victim 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

I always wanted to write something like a small “guidebook” for beginners about car insurance in the USA. I know some people from the United Stats of America and I see that a lot of people have common problems.

I would like to look at these problems though the eyes of beginners and help to solve them. Also it will be nice if you share your personal experience (please, leave your comments).

We are interested in PAINFUL POINTS (the post important things and problems): troubles, lack of understanding, the whys and wherefores of car insurance, insurance acts in different states, prices and at last I will try to answer to the following question:
Whether should you find your agent or it’s better to be insured in online?

Insurance plays an extremely important role both in the life of all American society, and in the life of separate family. We will speak about car insurance because each person faces with it. The need for other kinds of insurance arises later: in process of growth of incomes, preparation for retire on a pension, etc. We will speak about it later…

So, the most important questions for us will be the following:

1. Why it is necessary to be insured
2. Coverings: which for them and how much
3. Cost of insurance. Is it possible or impossible to save on car insurance
4. How the insurance companies sell insurance policies
5. Where and how to buy the insurance plan - with the help of agents, brokers or direct (online, by phone, etc.)
6. Myths and a reality in car insurances
7. Insurance fraud - how not to fall a victim to rascals
8. What to do in typical problem situations

Thanks everyone who will express his/her opinion. I hope that your comments will help us to create a helpful collective project.

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

There are a lot of different types of insurance, and in most cases in different insurance companies you will be offered standardized policies. But there are also some specific policies that will satisfy all the requirements especially for particular clients.  For example, you can insure your property against different types of crime that will be committed with respect to it. If you decide to do it, you should have at least some basic knowledge about such concepts as «crime», «legal liability» and other technical terms of law.
So, crime is a term that refers to many types of misconduct forbidden by law.
The list of acts considered crimes is constantly changing. For example, people are no longer charged with witchcraft, though many were accused of that crime earlier. In 1920s in the USA the manufacture or sale of alcoholic drinks was forbidden. Now it’s a legal job.
An act is viewed as a crime if enough evidence exists to make a police officer, a prosecutor, or a judge believe that a violation of criminal law has taken place. A person who commits any crime is called a criminal. The study of criminal behavior is called criminology and experts in this field are called criminologists. Criminologists study crime and criminals in order to determine where, when and why different types of crime occur. They also seek the relations between criminals and their victims, as well as the most effective ways to prevent crime.
By the way, people commit crimes for various reasons. It is not related to insurance itself, but these facts can help you to understand criminals (and don’t say me that it is job for criminologists ). So, for example, many people steal things they could not obtain otherwise. Others, such as drug addicts, steal to get money to buy narcotics or other things they need. Some shoplifters steal for excitement, but others do so because they are poor or sick (I mean kleptomania). Many take cars for joy-riding, but others sell the stolen cars. Many embezzlers take money from their employers to meet a personal emergency, intending to return the money. Some crimes are concerned with violence. A robber may kill the victim to avoid detection. A man may beat his wife in a rage during a quarrel. The researches show that many people who became criminals were neglected by their parents. Such treatment made them ignore the needs or rights of others. Some criminologists think that society makes people commit crimes.
Crimes are frequently classified according to their seriousness as felonies or misdemeanors. Generally, felonies are more serious than misdemeanors. Felonies are punishable by death, or by imprisonment for a year or more. Homicide, arson, rape, robbery, burglary, and larceny refer to felonies. Most people convicted of felonies serve their sentence in state or federal prisons. A misdemeanor is punishable by a fine or by imprisonment for less than a year. Among the most common misdemeanors are disorderly conduct, public drunkenness, and automobile driving violations. People convicted of misdemeanors serve their sentence in city or county jails or houses of correction.

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.

There is a kind of drivers that earn money with help of insurance companies. They just roam around the cities looking for inattentive drivers. Even if you are super – experienced driver you can easily become their victim.

Situation 1

You like active driving and you don’t like to be in “stream”. You don’t even think about changing lanes, you just do it. At the time of your next recurrent change of lanes the car which seemed to let you in rapidly accelerates and… your insurance company will pay damages to the “smart” guy. Yes, he did it on purpose, but law in that case is not on your side.

Sometimes danger awaits us in such places we never expect it to be dangerous. That is what happened last September in one of the Turkish resorts. A woman with multiple injures was delivered to the hospital. She fell down from the 8-9 feet high balcony. That kind of accidents is not surprise in Turkish resorts.  Especially in “all included” hotels, where guests misuse their unlimited access to free alcohol in hotel bars.  And they forget that insurance companies usually do not cover that kind of accidents, where, in fact, the victim is responsible for the accident. The insurer has the right to refuse to pay the clients medical expenses in such cases.

This page is generated by Wpkeys plugin