Q: What is “no-fault” auto insurance?
A: No-fault insurance, also known as PIP or Personal Injury Protection, provides coverage for certain medical and rehabilitation expenses from injuries sustained in an automobile accident. It pays benefits for injuries whether or not the insured person is negligent or “at fault”. (Property damage is the responsibility of the at-fault party.) The no-fault law expires on July 1, 2003. All policies with an effective date on or after July 1 will be issued under a “tort” auto insurance law...
Q: What is “tort” auto insurance?
A: A “tort” is a civil wrong, but not a crime. In auto insurance, a tort system means that a determination of fault in an automobile accident is made. The party at fault or his or her insurance company pays medical and rehabilitation expenses to the injured party, as well as property damage. An injured party may also sue for other losses including lost wages and pain and suffering.
Q: What is “liability” insurance?
A: Liability insurance is generally defined as coverage for bodily injury you cause to another person or for property damage you cause to another person’s property through negligent use of your vehicle. The minimum amount of liability insurance required by Colorado Law is as follows:
! $25,000 per person for bodily injury;
! $50,000 per accident for bodily injury; and
! $15,000 per accident for property damage.
Q: What happens to my auto insurance policy on July 1, 2003?
A: The current no-fault law expires on July 1, 2003. That means that all policies that are issued or renewed on or after that date will be written as tort policies. However, if you have a policy that was written before that date but expires after that date, you will still receive the benefits of your “no-fault” policy. For example: Mary has a no-fault policy that was issued on April 15th and expires on October 15th. She is injured in an accident on August 20th. Her medical and rehabilitation expenses will be paid under her no-fault auto insurance policy, regardless of the fact that the no-fault law expired on July 1st. These benefits will be paid regardless of who was at fault in the accident.
Q: Why would my no-fault benefits be paid if the law has expired?
A: Your current auto insurance policy is a contract. It was written under the laws of Colorado at the time you entered into that contract and prior to the expiration of no-fault. The new law does not interfere with your contract and the insurer is required to pay all benefits as outlined in your policy.
Q: If my policy continues until after July 1, can my insurer cancel my no-fault policy on July 1?
A: Not unless you approve of the change. Your auto insurance policy is a contract and cannot be changed mid-term unless you agree to such change.
Q: I don’t want to continue PIP coverage after July 1. Can I buy a tort policy even if my current no-fault policy continues past July 1?
A: Yes, as long as both you and your insurer agree to the change. As the policyholder, you may contact your insurance agent to discuss whether changing from a no-fault to a tort policy is the best thing for your individual needs.
Q: Will I be able to purchase coverage for medical expenses under a tort system?
A: Most, if not all, auto insurance companies will offer limited “medical payments coverage” to their policyholders. This provides coverage for medical bills incurred by you and your immediate family if you are at fault and injured in an auto accident. Check with your agent about the availability of medical payments coverage.
Q: What happens if I am at fault in an accident, and my medical expenses exceed the limits of my medical payments coverage?
A: Under a tort system, it is assumed that the negligent party is responsible for damages. Either you or your health insurance will pay for your medical expenses that exceed the limits on any medical payments coverage under your auto insurance policy.
Q: What happens if I am injured by a negligent driver? Do I have to go to court to get my claims paid?
A: In the vast majority of cases, the answer is no. Typically, the auto insurance companies settle on a determination of fault in a particular accident, and benefits are paid accordingly. Only in few cases where there is a dispute about who is at fault or to the extent of the damages will court action be necessary.
Q: What happens if I am injured by an at-fault driver who does not have auto insurance?
A: If you have purchased uninsured and underinsured motorist coverage, your insurance company will cover your medical expenses. If you have not purchased uninsured and underinsured motorist coverage, you or your health insurance will likely pay for your medical bills. You may of course sue the at-fault driver, but uninsured motorists typically do not have substantial assets from which to recover damages.
Q: How much liability insurance should I carry?
A: You should speak with your agent about your particular circumstances to ensure that you have enough insurance to protect your assets in the event you are sued for damages. Under the old PIP law, if you injured another person in a motor vehicle accident, that person’s PIP coverage would cover their medical expenses. Under the new law, your bodily injury liability coverage will cover those same expenses if you are at fault.
December 18, 2007
Answers to "Auto Insurance" Frequently Asked Questions about
December 15, 2007
Auto Insurance- Shopping For Auto Insurance Guide
By: Brad Stroh
With auto insurance premiums rising across the country, comparing premiums for similar auto insurance coverage has become the ultimate test of your shopping savvy. Have you checked with every insurer to be sure you’ll be paying the lowest premium for the most coverage? Did you check on all the discounts for which you might be eligible, such as good-grades discounts for your high school student, driver’s education and defensive driving course discounts, anti-theft device price breaks, and multi-car rates? Putting it all together to know you’re getting the best price is challenging, but the money you’ll save on your premiums makes the extra effort well worth it in the long run. Follow these three steps to be sure you’re making the right choice.
First, log onto http://www.naic.org to find out if there are any online resources that pertain to your area. This is the website for the National Association of Insurance Commissioners (NAIC). Find the link to NAIC States and Jurisdictions. From there, you can find out if your state or area has a website listing the current rates of local auto insurance companies. If so, you’re already a step ahead of the game. Just keep in mind that the rates quoted on these sites cannot take your personal situation into account. If you have bad credit or a poor driving record, your premiums will probably be higher than those listed on your local insurance commissioner’s website, but at least you can study trends of different companies in your area from an unbiased source, making useful comparisons that can save you time when you’re calling around. Even if your state doesn’t have a site, the NAIC website contains consumer guides with valuable information to which you may want to refer during your search.
Next, you need to shop around for coverage. Be honest with the companies you call or visit online about your personal situation, your insurance needs, and your driving history. When you receive a quote, confirm that you know exactly how much coverage is being offered for the premium amount mentioned. Remember that your auto insurance is actually a group of several different types of coverage. Ask how much coverage the quoted premium provides to you and how much each coverage is worth. Make sure you’re comparing similar plans, and know what’s required by law in your state.
Finally, it’s time to talk discounts. Once you’ve narrowed your choices, compare the discounts offered from one insurer to another. Get a quote on the final premium amount after all discounts are taken. One insurer may offer you two discounts good for 5% each while another may offer you only one discount. However, if that one discount offers you a savings of 15% total, it will make more sense to purchase your policy from the second insurer. Take a look at the bottom line (the final premium amount) for a true comparison.
Look at the information the NAIC has to offer you, shop around for the lowest premium and best coverage, and make sure you receive every discount to which you’re entitled. If you follow these steps, you’ll have the peace of mind of knowing you got the best auto insurance deal available to you.
Would You Like To Save Big Money On Your Auto Insurance And Reduce Your Risk Of Auto Theft?
By: David Maillie
With the rising price of gas, skyrocketing health care costs, etc... Americans are feeling the economic crunch. Lets put some money back in your pocket right now and lets take a bite out of auto theft.
The best part is
(1) You don’t have to switch insurance carriers.
(2) Local auto dealers charge $299-$499 for this same service (real price should be $25-$30)- What a ripoff! (Note dealers also charge $200-$1000 for replacement headlights when you can buy headlight cleaner and restorer for under $20).
(3) You can easily purchase it direct from the manufacturer below cost right through the internet!
Police departments, insurance companies, AAA Auto Club, Motor Week, Speedvision TV, and leading consumer groups and publications all recommend window etching as a strong theft deterrent and a great investment.
The top 10 most stolen autos:
1. Toyota Camry
2. Honda Accord
3. Oldsmobile Cutlass
4. Honda Civic
5. Jeep Cherokee
6. Chevrolet trucks
7. Toyota Corolla
8. Chevrolet Caprice
9. Ford Taurus
10. Ford trucks
Did you know that every 19 minutes a car is stolen in this country! Vehicles equipped with a visible theft deterrent system are 4 times less likely to be stolen. Auto etching uses a strong caustic to etch vin #'s and other registered numbers into your car windows (glass is the third most valuable item after plastic headlights and air bags that professional thieves look for - these items are then resold on Ebay and elsewhere by these thieves for quick cash). 95% of thefts are by professional car thieves.
Chemical auto etching is a safe process. No damage is done to the vehicle and it can be professionally done. It is very affordable as its actual costis 70 – 85% less than auto dealer’s charge and has many benefits:
1) It has been proven to enhances vehicle value at resale.
2) INSURANCE DISCOUNTS OF UP TO 35% OR MORE!*
3) No mechanical parts to break down or need repair.
4) SAVE MONEY AND HAVE PEACE OF MIND! – 9 out of 10 auto thefts are by professionals who will not take a car with traceable numbers.
One of the most cost effective security steps is having a security number etched on each window. Start saving big on your insurance today! Auto etch, like headlight cleaner and restorer, is a bonafide product backed and used by the police in every state. It is guaranteed to save you far more than it costs, has numerous benefits, And you can undercut the dealer and buy it without paying their ridiculous prices ($200-$600+)! For more information on Auto etch and/or similar products like headlight restoration kits contact the author below or look up auto etch on the internet. * Insurance discounts can vary by state and by carrier.
