Jack Humpherey: How do I review car insurance coverage of “accident forgivness” when I compare auto insurance quotes for a policy? Please help me in this.

Response: Before you compare auto insurance quotes, it would be best to review car insurance coverage. For this it is necessary to understand what the coverage means. I know that insurance policies are very large and seem to be a jargon to most of us.

Accident forgiveness is mainly a marketing strategy followed by the auto insurance companies. Let me explain how this is a marketing strategy for the car insurance company. Please check the terms properly before you go for this since:

For the client this would mean that the first-at fault accident is forgiven and the accident would not be counted. His car insurance or auto insurance premium will not be higher or hiked in the subsequent year. The slightly higher premium he is paying for this benefit would be much lower than the premium he would have to pay if the accident was considered and he was charged for the same. You need to remember that once you have an accident, even if it is a minor accident your record will be blemished and this clause of “accident forgiveness” would not apply or become null and void. Your policy will be counted as any other risk.

Please consider all factors before you buy your insurance policy. Compare auto insurance quotes and review car insurance coverages, before you go in for your car insurance. A little bit of understanding and precaution is better than paying a higher price for the years to come.

Thanks.

Kamlesh

Brad : I live in Georgia and a friend of mine was telling me that I should take an Uninsured motorist coverage since I would be at an advantage. Can you let me know more of this. What is stacking of limits? How will this affect my auto insurance?

Response : You need to constantly compare auto insurance quote both for coverage and also the rates. You need to take an uninsured motorist coverage to get the benefit if someone who is uninsured gets involved in an accident with you and injuries you and he is at fault. Let me show you how it would work for you if this happens. Presently there are a lot of people in USA who do not have an auto insurance policy and are uninsured.

In Georgia, underinsured motorist protection falls within the uninsured motorist statute.
Prior to the effective date of the new statute [January 1, 2009] an insured can only access up to the difference in the liability provided by an at-fault driver’s liability policy limits and the limit provided the insured under his/her uninsured motorist coverage. Thus, if the at-fault driver had a $50,000 liability limit and the not at-fault other driver had an uninsured motorist limit of $100,000, the maximum protection for the not at-fault driver from his/her uninsured motorist coverage is only $50,000. The insured taking coverage from his/her uninsured motorist limit is not entitled to the full limit provided under current law.
At-fault driver = $50,000 Liability Payment
Not at-fault driver = $100,000 UM Limit
Payment due from UM Coverage = $100,000 – $50,000 = $50,000¹
In the same loss situation above, if the at-fault driver had a $50,000 liability limit and the not at-fault driver had a $50,000 uninsured motorist limit, the not at-fault driver would not be entitled to any payment under his/her uninsured motorist coverage.
At-fault driver = $50,000 Liability Payment
Not at-fault driver = $50,000 UM Limit
Payment due from UM Coverage = $50,000 – $50,000 = 0
Beginning January 1, 2009 insureds will be able to get the benefit up to their full uninsured motorist limit when an at-fault uninsured/underinsured motorist is responsible for damages. The change simply means that the full amount of selected uninsured motorist limits can be used as an additional limit of coverage, without offset, from the liability limit of the underinsured at-fault motorist. For the examples above the formulas would change as follows:
At-fault driver = $50,000 Liability Payment
Not at-fault driver = $100,000 UM Limit
Payment due from UM Coverage = $100,000

Beginning January 1, 2009 the Uninsured Motorist statute expressly allows an insurer to “exclude”[offset] personal or bodily injury or death payments for which the insured has been compensated “pursuant to medical payments or workers’ compensation laws.”

The premium payable for this coverage of uninsured motorist is very less almost meger compared to the advantage you can obtain if this accident takes place. Make sure you compare car insurance quotes and review auto insurance coverage to ensure that you have taken the Uninsured Motorist coverage.
Good luck.
Kamlesh

Robert: I was hit by a negligent driver and I was not covered under auto insurance for the car I was driving? What should I do?

Response : If you have been injured by a negligent driver than you can definitely file a suit against the negligent driver for his suit. You will be awarded a benefit depending on the nature of your injury, and in proportion to the amount of fault assigned to the other driver. The other driver can also claim some benefits if some fault is assigned to you if he or any passengers in his vehicle are injured or the vehicle is damaged.

However, you will be penalized for not having an insurance policy depending upon the state laws and provisions, since most states require certain limits for auto insurance which are mandatory. If you are living in a state where insurance or your financial responsibility is allowed than it would work in your favor if you can prove that you can meet the financial responsibility. Since you do not have any insurance you cannot file a claim and so you will have to pay out of your pocket.

Roberta, I strongly recommend that you to have your auto insurance coverage. Please compare auto insurance quotes. Review the car insurance quotes, and coverage’s. I assure you, that you will find cheap auto insurance rate.
Thanks.

Kamlesh