Stephanie : What is no fault under auto insurance?
Response: No-fault auto insurance refers to medical coverage which you are required by state law to carry on your automobile insurance. Not all states have “no-fault” statutes, though almost all insurance companies sell some type of medical coverage for their auto policies. Basically, if you have an accident for which you aren’t at-fault, and you live in a “no-fault” state, your own insurance must pay for your medical bills. The “no-fault” part comes from the fact that even though someone, say, plowed into the rear of your car while you were stopped at a red light, your own carrier must pick up the ambulance, hospital, rehabilitation and other expense. Typically it’s based on the amount of the medical bills or the weight of the at-fault party’s vehicle. Many people who live in “no-fault” states often believe they can prohibit their carrier from paying their bills (with the assumption that they don’t want any payments made under their policy in case their rates go up). This isn’t the case. Much like worker’s compensation, “no-fault” medical coverage is primary, and the first-party insurance carrier must pay it. Finally, many people who know they live in a “no-fault” state often believe this has something to do with physical damage to a vehicle and liability. That’s not true. “No-fault” relates only to the medical coverage. If someone hits your vehicle, and he’s at-fault, he is still legally liable to pay for the damages to your vehicle.

Larry : What is a deductible under an auto insurance policy? Do I need a deductible under my car insurance policy?

Deductible gives you low auto insurance rates or auto insurance discounts

Response : You must have heard many people say that if you want a low auto insurance rate than you need to review car insurance coverage or compare auto insurance quotes and check your deductible. The higher the deductible you keep, you get a low auto insurance rate. Yes, it is true.

A deductible under the auto insurance policy is an amount that the insured -you would pay out of your pocket in case you have a claim.
For example: If your vehicle sustains $4,000 worth of damage in an accident and your collision coverage deductible is $500, then you will be responsible to pay the first $500 and your insurance company would pay the remaining $3,500.

You can choose different limits of deductible amounts for your auto insurance policy for your collision coverage and your comprehensive coverage. The advantage of keeping a higher deductible under an auto insurance policy is that the higher the deductible is the lower or cheaper will be your car insurance quote. You can save premium. However, please remember that if you keep a very higher deductible under the auto insurance than you would have to shell out that amount in a case of an accident, thus you need to be careful when you select a deductible under auto insurance. You can compare auto insurance to save insurance premium instead of going for very high quotes.

Thanks.
Kamlesh

James : Can I drive an auto legally without insurance? I cannot afford the high auto insurance rates.

Review car insurance to get low auto insurance rates.

Response : James, auto insurance is compulsory in most states of USA and you cannot escape from this. You are smart and hence you need to compare auto insurance quotes and review car insurance coverage online to get low auto insurance rates. Why keep the risk on your shoulders, pass it on to the insurance company for a few bucks.

Now, here is why it is not correct to drive without an auto insurance. It is mandatory to have an auto liability insurance in almost all states. There are financial responsiblity laws that need to be followed. As per the financial responsiblity laws in a state where the liability insurance is not required you need to have sufficent assets to pay for claims if you cause an accident.
In case you have inadequate assets than you need to purchase at least the state minimum required insurance. The insurance would protect your assets and also save you from stress.

It is also advisable to have the optimum limits of insurance. As per the insurance industry and consumer groups generally recommend a minimum of $100,000 of bodily injury protection per person and $300,000 per accident since accidents may cost far more than the minimum limits mandated by most states.

A lender who has financed your car would insist on a comprehensive and collison insurance which is part of the loan agreement. This is to protect their asset which is a car.

Kamlesh

 Clarie :My insurance policy has been cancelled by my insurance company – what could be the reasons? What should I do now?

Why do auto insurance companies cancel policies?

Response : When your auto insurance policy is cancelled ,you are again put in a position where you need to compare auto insurance quotes or review car insurance to get an auto insurance policy, which is now time bound. This is a position you do not want to be at any time. You always want to be in a position when you compare auto insurance quotes or reveiw car insurance coverage to get low auto insurance rates, hence it is better to be informed about cancellation of an auto insurance policy.
When an insurance company refuses to provide you with auto insurance coverage, you are naturally placed in an awkward position because of lack of information.

Here are the reasons for cancelation :
If an insurance policy has been in force for more than 60 days and the insurance company decides to cancel the policy than any one of the reasons given might be true:

• You failed to pay the premium in time.
• You might have misrepresented a fact on the application – for example if you are doing business than you might not have declared the same.
• Your driving license might have been suspended or cancelled.
• The insurance company believes that you have committed a fraud.

The first thing that you should do is to find out what was the reason behind the cancellation, which may not be as serious as having your license suspended or fraud. You will have to rectify the reason for cancellation of the policy. You can shop around for on –line insurance quotes and find out the appropriate insurance company you would like to go with. It is most likely that you will have to satisfy the insurance company’s queries with regards to cancellation of your policy.

Kamlesh (teenautoinsquote)