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Category Archives: Auto Insurance

Info Terms and Conditions of Auto Insurance

An insurance covers the policyholder and in most cases it covers other people who use the car or the driver. However if the car gets into an accident which is not in the interest of the policyholder, or in violation with the agreement between the policyholder and the insurance company, the insurance policy will not cover the damages from such accident.

In instances where the insured vehicle gets sold to another person, the new owner is covered by the third party liability Insurance and also by the comprehensive car insurance policy (if there is any) within a period of 3 weeks after the change of ownership. When there is a new active insurance policy, all deductibles under the insurance will be paid by the new car owner.

Auto insurance does not cover damage to vehicles in company possession for purpose of sale

Depending on the car insurance policy agreement between you and your insurance company, there might not be a need for you to notify them when the terms in the policy agreement changed. The consequence of refusal to notify the insurance might be forfeiture indemnity and compensation if an accident occurs or reduction of the indemnity and compensation or lapses in the payment if indemnity and compensation.

Therefore to avoid the consequences stated above, whenever there is a change in the policy information notify your insurance company immediately.

You can purchase the same auto insurance from two different insurance companies without terminating the initial insurance with the first company but when an accident occurs, the agreement in your car insurance policy will applied, and this may mean that both companies pay half is the cost for the accident each.

Another important thing to note regarding auto insurance is the deductibles which are based on the agreement in the auto insurance policy. Deductibles are deducted only once in cases of an insurance event involving both third party liability and damages under the comprehensive auto insurance.

No deductible will apply in situations such as:

1. Damages from a known liable tortfeasor

2. Damages from fire, explosion, lightening or theft

3. Damages from items falling on the car.

Furthermore, there will be additional deductible if there is driving damage to the car by another person other than the policyholder, or any registered user of the three car under the auto insurance policy.

There are certain accidents which your auto insurance policy may not cover. Under the liability insurance, your auto inside policy does not cover;

1. Injury to the driver

2. Damage from the carriage of goods by road under the acts of contract

3. Damage to attached vehicle

4. Damage which occurred at the time the vehicle was rented out unless it can be proved that the damage is as a result of occurrence which is in accordance with the auto insurance policy

5. Damage to items belonging to the driver, policyholder, anyone stated in the auto insurance policy it a regular user.

The following accidents are not covered by the comprehensive auto insurance:

1. Damage resulting from weather conditions

2. Damage car parts during repairs unless it can be proved the damage had occurred during the driving or by fire

3. Damage in the electrician and mechanical parts the vehicle, unless it can be proved the damage occurred in accordance with the auto insurance policy

4. Damage resulting from reckless driving i.e. Overheating or no change of oil

5. Damage which occurred while the car was rented out

6. Damage which occurred from intoxication of the driver

7. Damage caused intentionally by grid negligence

8. Loss of the car due to seizure of the car by law enforcement authority

9. Damage under warranty and guarantee

10. Damage from usage of the car such as wear and tear, scratches on the car body and so on.

Story of the Uninsured Driver

When Sally was hit from behind she sustained serious injuries. She was able to utilize her own auto insurance policy to pay for medical costs because the state where the accident happened was a no fault state. Essentially, this means that almost every insurance policy must provide any drivers or passengers in the insured vehicle medical payments coverage up to $50,000. This coverage is commonly referred to personal injury protection, or PIP. A policyholder can purchase more PIP coverage above and beyond the standard $50K if they so choose. In Sally’s case, her policy only afforded her $50,000 of personal injury protection at the time.

After she exhausted her PIP coverage, she met with a lawyer about suing Jimmy for pain and suffering and making a claim on Jimmy’s policy, but Jimmy was driving uninsured at the time! Even still, Sally decided to sue Jimmy after all and go after his personal assets. After a lengthy court battle, Sally’s pain and suffering was valued at about $200,000 by a court of law and a judgement was issued against Jimmy. To Sally’s chagrin, Jimmy had no assets so his wages were set to be garnished whenever he got back to work (which wouldn’t be anytime soon)! Sally’s medical bills went far beyond the $50,000 that she received through her PIP coverage. Sally also did not have health insurance at the time and didn’t have a lot of money herself. So how was Sally supposed to pay for all of her bills? She certainly wasn’t going to wait around for Jimmy to get a job!

Well, insurance policies typically have another standard coverage called Supplemental Uninsured/Underinsured Motorists Liability (aka SUM coverage). At the time of the accident, Sally’s policy only had the minimum required SUM coverage, which is $25,000 per person and $50,000 per accident in her state. Basically, this coverage paid out $25,000 to Sally for her pain and suffering (which mainly went to her medical payment costs) but she was still on the short end of the stick for all the medical payment costs she had incurred. Could she have had more of this coverage? How does SUM coverage work?

Supplemental Uninsured/Underinsured Motorists Liability (SUM) coverage is auto insurance coverage that is mandatory on all car insurance policies in many states. The purpose of this coverage is to protect people who are either hit by a vehicle with a driver who has little to no insurance, or involved in a hit and run accident. In the example of Sally and Jimmy, Jimmy had no auto insurance at all. So, the SUM coverage on Sally’s policy is there to pay for her pain and suffering in the case that she is unable to collect from Jimmy’s insurance.

The ironic thing was that Sally had high bodily injury liability limits of $250k/$500k but they didn’t apply in this situation. For just a few dollars more she could have had increased her uninsured/underinsured motorist (SUM) coverage to match her bodily injury liability limits and she would have been able to pay for the cost of all her medical bills with the help of her own insurance carrier!

Tricks Save on Car Insurance Premiums

When buying motor insurance you should compare quotes of the different insurance companies. This is the most convenient way to zero down on the best policy. You can find insurance quotes online which makes your search hassle free. To get car insurance online, make sure that you are getting the best value for your money.

You can save money if you insure more than one vehicle with the same insurance company. In this way, you can save money on each policy and this helps to save on the premium.

There is a general thumb rule for most insurance policies which says the higher your deductible is, the lower your premium will be. So, as long as you can afford to incur some loss from your pocket, you should opt for high deductibles.

You can always get hold of your car insurance policy along with the other insurance policies that you need to buy. While doing so, the chances of getting a good discount from the insurers increase and help you to save money.

Driving carefully and meticulously is one of the best ways to reduce premiums. If you drive well and follow all the traffic rules, chances of getting any tickets from the police or meeting with an accident are less. This will also have an impact on the insurance premium.

There are some companies which calculate the premium on the basis of the kilometers you drive. In such a scenario, it is better to opt for systems like the car pool on a regular basis so that the usage of the car is less and you are in a position to get discounts from the insurance companies.

Installation of an anti theft device in the car is a good thing to do too, as this reduces the chances of the car getting stolen. With these security measures in place, you will find plenty of insurance companies that can give you lucrative discounts.

About Driving Without Insurance

1. Bodily Injury Liability: a driver who causes an accident (the at-fault party) must cover all medical cost for the treatment of non at-fault party. Treatment and rehabilitation for physical injuries can cost a lot of money on the at-fault’s part without this coverage.

2. Property Damage Liability: the at-fault party should be responsible for vehicle/property damages as well. The cost for vehicle repair or replacement is the at-fault’s burden to bear. The coverage helps cover the expenses.

Liability insurance does not cover medical treatment and vehicle repair for the at-fault’s part. Drivers have to understand that one of the main purposes of auto insurance is to show that they are responsible for any accident that they may cause while they are driving.

Beyond the Road

Auto insurance is not just mandatory requirement by the state. Many (if not all) lenders are reluctant to finance a vehicle unless the borrower agrees to purchase at least minimum coverage requirement. In some cases, lenders also need some optional coverage types such as Collision and Comprehensive to protect the value of the vehicle in the event of both collision and non-collision crashes.

· Collision: in the event of collision after which the policyholder’s vehicle sustains damages, collision coverage helps to pay for repair expense. From lender’s perspectives, Collision coverage helps to maintain the value of the vehicle at least until the policyholder pays if off.

· Comprehensive: when damages are from non-collision instances for examples vandalism, animals, fire, and falling objects, Comprehensive coverage helps to cover the repair cost.

Many lenders require both coverage types before they allow a borrower to drive the car away. Even if the state’s DMV regard the coverage as optional, driver must accept that lenders can make the coverage mandatory for as long as the lease period is valid.

Not-At-Fault

Although it seems that auto insurance is only important for the at-fault party in an accident, the not-at-fault also needs auto insurance for legal reasons. For example: when an uninsured driver becomes the victim in an accident, the police officers in duty should still ask the driver to produce proof of financial responsibility. Failure to produce insurance card or similar document will result in driver license suspension. In worst case scenario, there will be fines, punishment in form of voluntary service for the community, or jail times. No matter what the punishments are, uninsured drivers are in real risks of difficult consequences.

High-Risk Drivers

In the states where auto insurance is mandatory, uninsured drivers (even when they are not at-fault in an accident) also have to deal with potential drivers’ status relegation from low-risk to high-risk; in this case, higher is worse. In the U.S., there are plenty of traffic checkpoints where police officers have the rights to ask for drivers’ insurance information. For those who drive without proof of insurance, there can be penalties such as SR-22 requirement. SR-22 is a certificate to guarantee that the holders will meet insurance requirement. The certificate also indicates high-risk driver status.

Avoid Accidents on the Road

Speed kills

Most people believe that they are invincible when in their cars, which is why so many of us drive over the speed limit. Unfortunately, speed significantly increases your chances of causing an accident. Not only could you lose control of the car, but you will also have much less time to react should anything happen in front of you, such as another car slowing down as a result of an obstruction. No matter how good you think your reflexes are, driving over the speed limit is never a good idea. Remember that you are not only putting yourself at risk, but other drivers on the road too.

Due to the fact that women tend to stick to the speed limit, women’s car insurance is generally much cheaper than car insurance for men.

Use your indicator

Yes, it does make an annoying noise that is enough to drive anyone crazy if they have been sitting in traffic for a while. But the fact remains that your indicator is there for a reason. While it is essential to use when turning corners, it is even more necessary when changing lanes. Even if you think that nobody is behind you, use your indicator as it will give other drivers a chance to use their brakes if you have forgotten to check your blind spot or if they are speeding and come out of nowhere.

Always have both hands on the wheel

If you have many years of driving experience, it can be quite easy to drive on ‘auto-pilot’. It is also common for people to drive using only one hand, especially in heavy traffic. This, however, can be incredibly dangerous. Should something happen ahead of you on the road, you will have less time to react and avoid an accident if both of your hands are not on the wheel. By remaining alert and driving with both hands, you can increase your reaction time and are more likely to retain control of the vehicle in the case of an emergency – or an unexpected pothole!

Auto Insurance Premiums Are Very Costly

Some of the things that determine how much you pay for auto insurance are listed below.

• What Type of Vehicle you Drive
There is a clear difference between makes and models of cars in regard to safety. Moreover, higher-end cars attached to a bigger price tag are more attractive to car thieves and are more expensive to replace; they are also more expensive to fix after an accident.

• Your Address
If you live in a place that has a higher crime rate, your premium will reflect the risk of theft. If you locality has proportionately more auto accidents and submitted claims, it will have an effect on your premium as well.

• How You Use Your Car
If you use your car for the commute to and from the workplace or use it for business purposes, you’ll find that you will have a higher premium than those that drive just to go to the grocer or for leisure trips.

• If You Are a Good Driver
If you never have gotten a driving ticket or never been an accident, you will have a lower insurance rate than those who have a less pristine driving record.

• Your Claims Record
If you have previously filed insurance claims, especially if they have resulted in big payouts, your insurance premium will reflect that. But you may also find a rate increase if you have only filed claims in regard to accidents where you are not at fault.

• How Old You Are
Young drivers, especially boys in the teen years, are grouped together as riskier drivers because the statistics say they display poor driving habits and are involved in and cause many more serious accidents than older drivers. To a lesser degree, those sixty-five and older may find their insurance rates up due to age matters that contribute to poorer reflexes, eyesight issues and more.

• Marriage Status
Studies show that husbands and wives are not involved in as many collisions as those who are not married.

• How Your Credit Rates
Though this may not seem fair to some, insurance companies may class you as a driving risk due to your poor credit score.

Essential Car Insurance Facts

Auto insurance rates in Alberta are determined by a variety of factors:

  • Your gender and age
  • Your driving experience
  • Type of vehicle you drive
  • Location and use of your vehicle
  • Your driving record
  • The amount of coverage you’ve selected

How to get the Cheapest Auto Insurance in Alberta

Compare rates among various companies and don’t feel like you must stick with the insurers your parents used. There are many insurance providers available, and often they use competitive pricing, meaning different providers may offer the same policies at greatly different prices. Talk to a broker (who compares auto insurance rates in Calgary for you) or use online tools to see where you can get the best rate for the coverage that is right for you. As well, reading auto insurance reviews will help you avoid unexpected issues. Search online for opinions using blogs and forums.

Sometimes you can get better rates if you bypass the broker or agent and deal with a direct insurer, like Belairdirect or TD Insurance.

Use rate tools and calculators. For instance, if your credit card includes rental car protection, you can save 20 per cent by paying with it. You can use a credit card navigator tool to assist you in finding insurance for a rental car compatible with the value add-ons on your credit card. You can also use an insurance price comparison tool to compare insurance premiums.

Mobile Telematics Are Making Our Roads Safer

These are all common mantras one hears in most conversations surrounding mobile devices and car use. And with good reason; often, those who utilize their phones while driving are doing so at the expense of paying attention to the road, endangering their own lives and the lives of those around them.

But what if it were possible to use mobile devices safely in the car? Better yet. What if it were possible for mobile phones and tablets to actively make driving, well, safer?

Sound too good to be true? It isn’t — all thanks to the rising tide of mobile telematics solutions that allow auto insurance companies to engage with their customers like never before. Mobile telematics solutions harness the power of portable, everyday devices, such as smartphones, smartwatches, and tablets in order to meet customers on “their territory”. These applications, according to Intellimec, offer “a unique opportunity to transform [… ] The market by leveraging technology the majority of consumers already have”. After all, the vast majority of drivers already owns at least one of these devices and use them daily in order to maintain communication, consume news and entertainment, and even regulate multiple social media channels.

As a result, auto insurance carriers around the world and across the United States are steadily embracing usage-based insurance (UBI) methods. UBI allows these carriers to collect massive amounts of real-time data on their policyholders’ driving patterns and behavior through telematics applications specially designed to track usage patterns, frequent destinations and routes, and even traffic or weather conditions during accident or crash scenarios. This insurance providers may tailor their plans and policies to each unique driver.

But what telematics features specifically create these safer roads for drivers? Let’s explore a few of them.

Premium Tech for Both Insurers and Policyholders

You’ve probably heard the phrases “cloud-” and “SaaS-based analytics” systems thrown around the insurance and admin verticals in recent months. Cloud-/SaaS analytics are shaping up to be the backbone of auto insurance; such systems offer astoundingly configurable dashboards that allow you and your drivers to make sense of the live data stream from the mobile app and web portal. Consequently, businesses can now customize their policies and premiums to their clients’ driving history. Simply put, drivers are rewarded for “good” behavior — and this translates into safer roads for all!

Advanced Informative Tools and Data Collection Capabilities

But what actual tools within the system enables such fastidious information management? The best mobile telematics apps keep track of all your hard brakes, rapider-than-usual acceleration, time spent behind the wheel, and even your most highly frequented locations and routes. As aforementioned, these features work together to create reports of your driving patterns, as well as to suggest safer or faster routes to your usual destinations.

Telematics applications can even distinguish drivers from non-drivers in order to create accurately configured reports for both monthly updates and FNOL claims filing. Policyholders may even receive live updates on traffic and impending weather, Furthermore, the most advanced systems contain teen driving programs, offering parent/guardian-sanctioned location and speed parameters to help beginner drivers develop safe driving habits. Even with social media can play a role if the users so wish; drivers operating on telematics networks can interact with each other to exchange useful tips, creating safer, more well-protected driving conditions for all drivers.

Improved Customer Engagement On and Off the Road

All of the above tools formulate an environment in which clients and insurers interact with each other on more equal footing — and within relationships build on deeper trust. Auto insurers are able to collect raw data from consumers, who no longer need worry about providing evidence of conditions after accidents. Mobile telematics transform the client-business relationship from one based on burden of proof and accusation, to one based simply on creating better driving conditions for every driver.

Info of Car Insurance or Vehicle Insurance

Broadly, car insurance policies cover six high risk categories, the premium payouts are based on the pricing for each of these separately.

• Accident or collision cover
• Bodily injury liability
• Comprehensive
• Medical
• Property damage liability
• Uninsured motorists’ coverage

Accident cover or collision cover – provides accident and injury coverage for policy holder if he sustains injury while travelling in an insured vehicle, along with damages to the insured vehicle.

Bodily injury liability or third party legal liability – a driver may be legally required to pay compensation if his car causes injury to a third person or results in the death of a third person. Most car insurance policies provide cover against legal liabilities that are caused by accidental damages to third person and property. The coverage limit for injuries or death is not fixed and depends on a case-to-case basis.

Comprehensive – some insurance policies cite this as ‘Vehicle Damage’ which includes natural calamities. Comprehensive generally excludes accidents but includes theft, and damage to car from natural calamities such as earthquake, explosion, fire, flood, hurricane, landslide, lightning, falling objects etc.

Medical – also known as Personal Injury Protection (PIP), this covers medical treatment of injuries to the occupants of the insurance holder’s car at the time of an accident. It can extend to include medical or hospital bills, lost wages and some other clauses which may vary.

Property Damage Liability – provides cover against damage by the policy holder to third party property. The coverage for property damage is mostly defined.

Uninsured motorists’ coverage – this covers treatment costs for the insurance policy holder from injuries sustained through accident or collision with an uninsured driver or vehicle. Although not all state insurance rules specify or require that car owners must have insurance to cover all these risks, they recommend minimum liability cover for bodily or personal injury protection and property damage.

Other elements that are included as add-on risks depending on need or request from policy holders are:

• Auto replacement
• Rental car coverage
• Towing coverage

Accident Insurance

Although the original insurance companies were built on the notion that accidents result in bad consequences, this is not always the case. Who, after all, can claim they do not enjoy a bite of a chocolate chip cookie? Have you ever heard someone complaining about eating a potato chip? And what about modern medicine and the amazing cures they provide? Many of these beneficial products were created by… you guessed it – accidents!

Blessed Accidents

• When a cookie business owner realized she did not have the baking chocolate required for her recipe, she improvised by using a standard bar of chocolate. She reasoned that the chocolate would melt in the oven and become equivalent to the ingredient she lacked. Lo and behold, the chocolate bar in the finished cookie product was her claim to fame as the dotting chocolate chip version became an instant success story.

• After discarding an experiment dish in the trash, scientist Sir Alexander Fleming took a second look: why, the utensil was full of mold that continued to break up bacteria around it! The ‘accident discovery’ led to something amazing – a seeming miraculous drug, known as Penicillin that benefits mankind in every nook of the world to this very day!

• Engineer John Hopps thought he could cure hypothermia by inventing a device that would restore a person’s normal body heat temperature. With radio frequency, he chanced upon what we know today as the pacemaker, used by heart doctors all over to save patients’ lives!

• Who wanted a dish of burned groats? Not two brothers who left the scorched pot full of black contents on top of the stove. When the blackened groats became thick and dry, the men took note. Skimming off the moldy parts, they created the very first bowl of cereal made from corn that you can buy off the supermarket shelves in modern times!

• One disgruntled chef at a resort hotel decided to get even with a pesky patron who kept on complaining about the fried potatoes he was served. The chef fried extraordinarily skinny potato slices that were difficult to munch on. Surprise! Surprise! The customer smacked his lips in appreciation of the first delicious round of potato chips!