accident at Insurance Online

Today I would like to continue my previous post and tell you about different types of coverage; it means that we pass to the second question from the list:

Coverage: which of them and how much

We do not have the task to pass on all available coverings in the world of car insurance. There are a lot of sources in the network, books where you can find information, and, not in the last instance, your insurance agents. On the contrary, we shall try to see a problem as a whole, not dividing it into details.

Liability Coverage

We speak about this type of covering when somebody brings an action against us or somebody is going to do it, irrespective of validity of claims and irrespective of result of the court examination. 95 % cases do not reach the court, as the parties reach settlement. The insurance company in this case pays (instead of us) not only damage which we have brought to health or the property of other people, it also pays litigation cost. Sometimes it does it without any payment of indemnification to fight tooth and nail against completely absurd claims and spends thousands of dollars on good lawyers.

The person cannot be judged for the sum, bigger, than all his assets (bank accounts are included), equity in the real estate, shares, and, that is very important for beginners - garnishment of wages (deduction from wages during 10 years forward from all members of family at the rate of 25 %). That means that young family without good private means have not so many assets. But, the husband and the wife can earn together, for example, 160 thousand one year. Therefore it is possible to keep 400 thousand dollars within 10 years back.

The important question:

In what situation the court will take away everything from the initiator of traffic accident?

The answer:

The court will take away everything from the initiator of traffic accident in case of death(s), or in case of physical inability of another person.

The amount of damage also depends on the solvency of the victim. The moral damage\spiritual injury (pain and suffering) of a serious lawyer or a doctor costs much more than the same one of a worker.

It is obvious, that we as drivers cannot supervise how many car we shall damage in case of traffic accident, neither their price, nor quantity of drivers and passengers, neither gravity of traumas received by them, nor cost of their subsequent medical treatment. Therefore, we proceed from the worst for definition of the amount of our insurance responsibility.

We should calculate how much it is possible to take away from us if to take away everything, including 25 % from the salary during the next 10 years? So, it is necessary to insure our liability for this sum in the part which is responsible for damage to health of people (Bodily Injury - first two components of our fraction - for more information see the previous post CAR INSURANCE IN THE USA: WHY IT IS NECESSARY TO BE INSURED).

But soon $500,000 of the maximal coverage will be not enough. Then we need an additional coverage in form of Umbrella Insurance. The need for insurance coverage varies from time to time. This implies very simple and important …

The Conclusion:

Insurance coverage should be reconsidered periodically, in accordance with growth of the potential responsibility.

Uninsured Motorist Bodily Injury (UMBI) - covers our moral damage and physical injuries in a case, when we have suffered from the not insured (or insufficiently insured) driver. That is, if the initiator of traffic accident has no enough Liability Coverage. Usually we take this covering in the same size as in Liability Coverage and not less. A principle is the following - it is necessary to insure ourselves not worse, than we insure against other people.

Uninsured Motorist Property Damage (UMPD) - covers damage to our automobile in similar circumstances that is if we have suffered from the not insured (or insufficiently insured) driver.

If WE have damaged our car the damage will be covered as Collision (collision with machine, the house, a border etc.) or as Comprehensive (the rest cases - collision with an animal, theft, vandalism, hailstorm, flooding and so forth). You can buy such an insurance with different deductible (the sum paid to you before the insurance company starts to pay).

Choosing the large amount of deductible the person saves on cost of the insurance, but loses in case of accident. The person who drives without accidents for a long time (some years) it will be reasonable to think about high deductible on Collision, for example, $1,000. Comprehensive which costs ridiculously a little, and it is possible to take $250 as there is nothing to save.

Medical Coverage

Medical Coverage is rather curious covering . Some thousands of dollars, usually 2-5 thousand, that were bought in this coverage, are spent without examination (in other words you may be guilty or not). In the case of expensive medical treatment the necessary sum will be charged from the Liability of the guilty person.

To be continued…

<:3 )~~~~~~
Yours sincerely,
AlexSandra

Do you remember about new interesting topic “CAR INSURANCE IN THE USA”? In my post about it I told that we will be interested in PAINFUL POINTS and I also listed the most important questions. So, today I would like to answer the first one: Why it is necessary to be insured.

First of all it’s important to know that that you must insure your car without fail in most states. Otherwise your friend with 4 wheels will not be registered!

The second thing - insurance is adjusted legislatively at states level, not at federal one. This implies very simple and important …

Conclusion №1

You can trust the information received from the experts in insurance from your state only. Any information from other states can be absolutely inapplicable outside these states.

As I have said almost in all states (there are exceptions) car insurance is obligatory regarding LIABILITY (civil liability). The size of required covering varies from state to state.

For example, in California it makes up to $15,000 bodily injury for one victim and up to $30,000 for more than one victim. Moreover, there is the responsibility for damage of other’s property - $5,000. I’ve made all these accounts for one accident only. It means that aggregate payment will be between 20,000$ and 35,000$.

By the way I’d like to mention that experts in insurance usually use fractional record for amount of covering. Record 15/30/5 corresponds to the covering that has each driver in California according to the law of this state.

Driving without the insurance is a serious crime and is punished strictly!

A piece of advice:

You shouldn’t communicate with people who drive without the insurance or argue that it is possible, or they say why this kind of a crime is “nothing terrible”. These people on a way to the big troubles - it is not necessary to keep them the company.

According to the police statistics in California 28-30 % drivers have no any insurance in general. I can add to this still the same percent of people having minimal covering and you will understand, that it will be very difficult to receive money from others (your will have few chances). This implies very simple and important …

Conclusion №2

It is necessary to have your own car insurance policy!

Moreover, there are two types of the states:

- At Fault (for example, California - the culprit pays the insurance to the victim)

- No Fault (for example, Arizona -your damage is compensated with your insurance irrespective of fault)

The conclusion №3

You should known about the system in state, where you live or are going to live.

If the person is very poor and is going to remain poor practically to the end of his days, in this case driving without the insurance is nothing for him. It must be confessed. In all other cases the sum of insurance should protect the driver from requisitioning of his property and incomes (including the future incomes).

Besides arguing about the whys and wherefores of car insurance, we should know, that are no such occupations in our life which is more dangerous then driving (if you are not a policeman, fireman or something like that). Therefore, it is necessary to answer the following question: “Shall I risk life and health of other people to save ten or more dollars a month?”

<:3 )~~~~~~
Yours sincerely,
AlexSandra

Summer is time for vacation. A lot of people travel abroad in order to see other countries, to restore their health. And that is why it’s very important to care for your medical insurance abroad. Travel insurance will help you to do it.

This type of medical insurance will cover all medical expenses incurred during your trip abroad regardless of the purpose of the trip (business or vacation). Note that OHIP (Other Provincial Health Insurance) plans do not cover such expenses. That is why travel insurance is very popular in different countries. And as an example I would like to tell you about this type of medical insurance in Canada and about one of the most popular companies 21st-Century Travel Insurance Limited that operates in this country.

So any traveler regardless of his/her status in Canada can benefit from travel insurance, which can provide up to $2,000,000 (!!!) accident/illness protection.

21st-Century Travel Insurance Limited offered travel insurance at different prices.

All children under age of 21 are included in the contract free of charge!!! And that is why the prices for families with children in this company will be substantially lower. To calculate the daily cost of insurance for the whole family, you should multiply the daily cost of insurance for the older parent by two, and then multiply the sum you’ve got by number of days, and you’ll get the total cost of insurance (no taxes).
Special pricing is also available for groups such as sport teams, clubs, etc. In this case you will be surprised by the prices.

For frequent travelers, the cost of insurance can be reduced by buying one-year insurance plan:

This plan will be useful for frequent business travelers, as well as for truck drivers, who cross the border repeatedly during the year. The insurance provides up to $2,000,000 protection for the following expenses that are not covered by OHIP within the United States:

- treatment for illness;
- treatment of toothache;
- costs of medications and lab tests;
- emergency hospitalization;
- transportation of vehicle of the insured back to Canada, in case he/she is returning by a plane;
- travel costs for family members to the hospital where the insured is undergoing treatment (if recommended by doctor);
- dental work and treatment for damages resulting from the accident.

according to www.totrov.com

<:3 )~~~~~~
Yours sincerely,
AlexSandra

Caution is the parent of safety

an English proverb

Companies and individuals protect themselves against loss, damage, or injury by taking out insurance policies, which are contracts against possible future risks. The usual process of insuring a business or oneself is as follows:

A proposal form is completed by the firm or a person who wants insurance cover. This tells the insurance company what is to be insured, how much the policy is worth, how long it is to run, and under what conditions insurance is to be effected, as the policy may not automatically cover the insured against all risks.

Underwriters, who will pay compensation in the case of a claim, then work out the premium, i.e. the price of insur­ance. If the insurers are satisfied with the information given on the proposal form, they will issue a cover note. This is not the policy itself, but an agreement that the goods are covered until the policy is ready. Once the policy is sent it will tell the client that he is indemnified against loss, damage, or injury under the conditions of the policy.

Indemnification means that the insurance company will compensate the client to restore him to his original position before the loss or damage. Therefore, if you insured your car for $4,000 and three months later it was damaged, you would not receive $4,000 for the car, but its market price, which might have depreciated by 20% to $3,200. The insurance company will also have the right of subrogation, which means they can now claim the wrecked vehicle and sell it for any price they can get.

Companies and individuals make claims for loss, damage, or accident, by filling in a claims form, which tells the insurance company what has happened. If the insurers accept the claim, often after an investigation, they will then pay compensation.

POINTS TO REMEMBER

1. Insurance is designed to cover a business or individual against risks such as loss, damage, or injury. Numerous types of policies are available to offer cover against eventualities, but the client has to decide which hazards apply to him.

2. Assurance is concerned with offering benefit payment either to dependants, in the case of death or incapacity, or in the case of endowment schemes, a lump sum of pension after a number of years’ contributions.

3. Indemnification is the cover which allows compensation In the event of loss or damage, and is calculated on the market value or depreciation value of goods, not their original value. To be insured, a client completes a Proposal Form; the premium is then assessed and quoted, in the UK, in pence per cent. On acceptance, the client is issued with a cover note which gives him cover until the policy is ready. As insurance is based on the principle of good faith, and supported by laws against fraud, insurance companies accept that the items being insured belong to the client, are not being insured more than once, are of the value stated, and that the client will follow the conditions of the policy.

4. Marine insurance offers shippers a variety of policies to cover shipments. However, most exporters ship under an all-risk, valued policy which covers them against most eventualities and allows them compensation for loss or damage, plus ten per cent.

5. Open cover and floating policies are used when the exporter makes regular shipments. These give him a total amount of cover which decreases as each shipment’s value is declared, but can be renewed.

Health insurance covers a variety of costs. Some policies cover a stay in the hospital and services offered by the hospital. Surgical expense coverage provides benefits for surgery resulting from illness or accident. Beyond this, a policy may cover what are called regular medical expenses, including doctor’s fees, home nursing, diagnostic tests, and ambulance service. Some policies also cover prescription drugs.

Major medical, or catastrophic coverage, was introduced in 1949. It entails an added cost, or premium. This coverage pays only for large medical expenses, such as open-heart surgery or organ transplants. Because of enormous increases in medical costs since the 1950s, major medical coverage has grown rapidly in popularity.

Health insurance policies frequently carry a deductible clause. This means that the policyholder is required to pay the first part of his or her expenses, usually a nominal amount, before the insurer makes any payments. Deductibles are included in automobile and property insurance as well, to relieve the insurer from having to pay frequent, small claims.

Health insurance policies are offered in two basic forms:

cancelable;

noncancelable.

Some policies can be canceled at any time by the insurer, presumably because of having to pay large benefits. Some are noncancelable during the time the policy is in force normally one year but may be renewed only if the insurer is willing.

One of the most valuable employee benefits offered to working people is group health coverage. Group health insurance is a 20th-century innovation that has expanded rapidly since 1950. The United States has developed a broader system of privately insured health coverage than any other nation.

The major advantage of group plans is lower cost to the individual. In most of these plans the individual employee pays part of the cost of premiums from payroll deductions. Premiums are lower because rates are based on a group, which is often very large, instead of on the individual with his or her known health history. Another advantage of group policies is coverage for dependents of employees. Some group plans include eye- and dental-care policies. Eye-care policies were introduced in 1957. The first comprehensive dental plan was started in 1959.

In a group policy, contracts are issued by the insurer to the employer for the persons to be covered. People who work for government bodies, unions, churches, schools, and other associations are also covered by group policies. The employer is, in effect, the policyholder, though the individuals are given policies detailing the extent of their coverage. Retired persons are normally able to continue their policies as a supplement to Medicare coverage.

Types of coverage are much the same as with individual policies: protection against income loss, hospital and physician expense coverage, major medical, and disability. Disability income plans are designed to supplement workmen’s compensation insurance.

A new type of health insurance developed in the 1980s offered coverage for most nursing home costs. This long-term coverage was designed for the over-65 age group, an increasingly larger segment of the population. Without such policies many people would have to liquidate their savings. Neither government assistance nor other plans are meant to defray more than a fraction of such expenses. In response to public concerns regarding rising private health-care costs, a governmental task force was appointed in 1992 to address the possibility of enacting federally funded, universal health-care insurance coverage for all people in the United States.

All insurance is a form of risk management. To deal with the unforeseeable risks to health through accident or illness, various types of health insurance programs have been devised. Health insurance is offered to individuals in two forms:

• individual plans
  
• group plans.
  

The insurers may be private companies or governments. Since the early 1970s another type of health-care coverage has become prominent:
 

the health maintenance organization, or HMO.

In some countries no insurance companies offer health care because governments have taken over the entire responsibility. China is a primary example. The United States has a combination of private and government-sponsored insurance. Some government programs are limited to specific groups within the population, such as veterans, members of the armed forces, and government employees. Others, specifically Medicare and Medicaid, are open to most of the population.

The purpose of health insurance is to provide protection against loss of income and to cover the expenses of hospitalization and some of its associated costs. Some policies also carry disability provisions, which will pay insured individuals, should they be unable to work because of extended illness or permanent physical disability. (Temporary disability is usually covered by workmen’s compensation.)

Accident insurance covers sudden and unexpected injuries, while sickness insurance applies to illness or disease. There are policies that cover accidents only, while normal health insurance covers accidents as well as illness.

Some policies are designed only to provide extra income during hospitalization. Many of these are known as mail-order policies, because they are sold to individuals who answer mailed solicitations or reply to ads in newspapers and magazines or on television.

After an accident, the insurance adjuster calls with the bad news: Your car has been totaled. The insurance company will cut you a check for the value of your car–minus the deductible on your collision coverage–and sell it for salvage. Will you get enough money to replace the car?
Yes, you probably will.
Insurance adjusters typically use several sources to pinpoint the retail value of your car (what you could have bought it for before the accident). They look at used-car price guides, consult specialized services and software, call dealers and even peruse local classified ads. Then, they come up with a range. Where your car falls depends on its condition, mileage and options. That’s where subjectivity comes into play and disputes can arise.
If your car was a pampered, low-mileage cream puff, make your case. Insurers concede that when a collectible car or specialized vehicle is involved, it’s hard to find enough comparable models to get a broad sampling of value. “If the consumer can provide information to help us, all the better,” says Greg Poling, a State Farm auto consultant. If you can’t persuade the adjuster to increase the settlement, appeal to his or her manager. If push comes to shove, call your state’s department of insurance. State law often prescribes a grievance procedure.
Do the math. In most states, your car is considered a total loss when the cost of repairs plus the probable salvage value exceeds the actual cash value of the car.

Insurance for those leaving abroad is the second popular at swindlers. In this area doctors swindle more often, for example, foreign doctors quite often enter the arrangement with heads of tourist groups. The last ones collect insurance policies from tourists, and the doctor writes out the bills for ostensibly rendered services. After payment the doctor shares the income with the representative of tour agency. They do it in Cyprus, Turkey, Israel, Greece. The most known swindle of the last year became «the case of turkish doctors». The combination was played in the best traditions of east market when the required cost of medical services was couple times more expensive than the real one.
Travel agencies do not stay behind in swindle.
So, for the convenience of the clients the insurance companies make plastic or cardboard cards which carry all the most necessary information - number of the policy, phone of service, data which is necessary for informing the dispatcher in approach of an insurance case. The travel agency gives the cards to the clients, informing, that the policy is written to a group and the guide has it. And actually there is no any policy, tourists leave for the resorts with useless scraps of paper. If someone of them will get sick or will be injured, in the service company will answer: «Excuse us, you have named a nonexistent number of the policy ». To hush up the case the tour agency usually compensates the client his expenses on treatment. But the tourist does for himself a conclusion, that insurance is nothing but a fiction, and all insurers - swindlers.
Less popular ways of swindle - falsification of the medical documentation for reception of payments on insurance upon accident, a performance of death for reception of payments on the life insurance, targeted murders of people, insured in favor of the criminal. The basic danger for the insurance companies is represented with cases of arrangement between its representative and the swindler. They open weight of opportunities before swindlers: the overestimated amount of damage, unreasonable payments.

There are some more unhonest people who make money on regular drivers. That case is absolutely disgusting.
Two citizens of Ukraine, the visitor from Uzbekistan and the inhabitant of Nizhni Novgorod are detained. On preliminary data, they have deceived not less than fifteen persons.
Swindlers chose the lonely driver by the good car, caught up with it on the car, honked and demanded to stop. When the car owner left the car, swindlers told that it “has hooked” on them. At this time one of accomplices imperceptibly wiped up with the sand-paper the car of a victim, and his accomplice specified this place and proved that those traces come from a collision.
Then criminals called the figurehead, which on behalf of the insurance agent told that the insurance company will not cover the damages because the participants of this collision have left a place of road accident. After that, speculators called the dealership, found out the cost of repair and demanded from the victims the compensation of damage.

Situation 2

You are traveling in the left lane and have no idea that you are already a victim in criminal plan developed by two drivers. One of them suddenly appears in your rear-view mirror and begins blinking requiring to yield. Of course you yield to him and take the right lane. The car in the right lane which seemed to be on a safe distance just few seconds ago is hit by you. You become a classy culprit of accident. The “fast” guy goes further and you are getting ready for a long talk with police and insurance company.

Situation 3

You are driving your car. You see an expensive car passing you, going in your lane. Next moment driver of this cool car hits the break and you are “front-bumpering” his car. You are guilty again. The situation is absolutely disgusting – you understand that you are not guilty, but the law makes you the who’s got to pay. The most experienced wouldn’t prevent that kind of accident.

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