Auto Insurance Questions Archive for 2009

• Within how many days should a person collect the GAP insurance claim when the car is totaled in an accident?

  This would depend on the exact terms of the GAP insurance policy. If the primary insurance company had declared the car as a total loss, then the GAP insurance company should be immediately notified. The primary insurance company would estimate the actual cash value of the car. Based on that estimation, the GAP insurer would determine the amount that would … (more) July 16, 2009

• What is the difference between various insurance policies like comprehensive policy, collision policy, etc.?

  Collision policy coverage would be available when there is a collision between two vehicles or any other collision. On the other hand, comprehensive policy provides coverage for all other mishaps other than collision, like theft, fire, etc. It would be advisable to have both policies to cover all the risks. However, the collision policy could be omitted if the car … (more) July 16, 2009

• Would all the persons driving the car be covered by the car insurance?

  Normally, the insured person and the spouse would be named on the car insurance policy. However, any other person having the trust and permission of the insured person could drive the car. Still, it would be advisable to list all the persons in the household in the insurance policy so that they are covered by the policy. Persons not living … (more) July 16, 2009

• How would the loan or lease GAP insurance premium be calculated?

  The loan or lease GAP insurance provides valuable protection when the car is totaled in an accident. In the first few years of the life of the car, the actual cash value offered by the insurance company when the car is totaled would usually be lesser than the actual retail value of the car. The GAP insurance would compensate this … (more) July 15, 2009

• What would happen if a person is driving a car without purchasing car insurance?

  This would depend on the state in which the person lives in. Majority of states have very stringent laws on car insurance. If a person were driving a car without purchasing proper car insurance, it would mean that he/she is not following the state laws and the fines or penalties can be quite tough. A person who is doing this … (more) July 15, 2009

• What are the laws on financial responsibility in car insurance?

  The state laws on financial responsibility intend to ensure that each person driving a car is having the financial capacity to pay or compensate for any mishap that might occur while driving the car. The car insurance is the easiest method of proving the financial capacity. July 15, 2009

• Is loan or lease GAP insurance policy coverage important?

  The loan or lease GAP insurance policy coverage is purely option. If a person wishes to purchase this policy coverage, he/she must be having both comprehensive coverage and collision coverage. A substantial deductible should be provided and the car should have a lien holder, since the car would either be leased or financed to the lien holder. This coverage would … (more) July 14, 2009

• What are the merits of medical payments coverage?

  The medical payments coverage offers protection when medical expenses are incurred by the policyholder and the co-passengers when they are injured in a car accident. This policy would also provide cover if vehicle injured you as a pedestrian. In spite of the person at fault, this coverage would apply for compensation. The medical payments coverage would be available to the … (more) July 13, 2009

• What is the specialty of first party medical benefits coverage?

  First party benefits coverage is a multi-area insurance cover scheme. However, in car insurance, this coverage would be termed as first party medical benefits coverage. This scheme is similar to personal injury protection coverage or medical payments coverage. The first party medical benefits would pay for the medical expenses of the policyholder and the relatives in the household, when injury … (more) July 13, 2009

• Are there any variations in personal injury protection policy coverage?

  Yes. In a few states like New Jersey, a choice of personal injury protection policy coverage is offered. The choices are listed hereunder. Full personal injury protection primary policy coverage is to meet the injuries sustained by the policyholder or the co-passengers in a car accident. This option would also cover the continuation of the income, death benefits, funeral expenses, … (more) July 12, 2009

• Is personal injury protection policy coverage useful?

  The personal injury protection policy is a limited coverage policy that provides protection for the medical and hospital expenses of the insured person and other passengers in the vehicle, along with any pedestrians that were struck by the car. If any death had occurred, this personal injury protection policy would cover the funeral expenses also. Without regard as to who … (more) July 11, 2009

• What are the uses of basic reparation benefits coverage and additional reparation benefits coverage?

  The basic reparation benefits coverage would contribute to the medical expenses to the selected amount. Certain states allow additional reparation benefits coverage to extend the cover to specified additional benefits. This coverage is purely optional. The policyholder would not be eligible for medical payments under this cover. July 10, 2009

• Is underinsured property damage car insurance policy similar to uninsured property damage car insurance policy?

  Yes, the underinsured property damage car insurance policy is similar to the uninsured property damage car insurance policy in all aspects. The only difference is that the other person at fault in the accident would not have the necessary coverage that is required to meet the damages. This policy coverage would contribute the balance amount of the repair or replacement … (more) July 10, 2009

• What is meant by uninsured property damage car insurance policy?

  The uninsured property damage car insurance policy covers the vehicle when property damage occurs to the policyholder and the driver at fault does not have any insurance. If the policyholder does not have collision insurance policy coverage, the uninsured property damage car insurance policy coverage would contribute a portion of the repairs to the damaged car. In many states, the … (more) July 9, 2009

• Is uninsured motorist bodily injury car insurance policy necessary?

  The uninsured motorist bodily injury car insurance policy provides coverage for the policyholder, the listed members of the household, and the passengers in the car. This protection is for the bodily or personal injuries, the damages, or even death that had been caused by an uninsured person who had been at fault or by a hit-and-run driver. If an accident … (more) July 8, 2009

• What are the advantages of collision coverage car insurance policy?

  The collision coverage car insurance policy is one of the most essential policies that every car owner must purchase. This collision policy covers the damages to the car if the car hits another vehicle or object or if another car or object hits the car. The coverage is not limited to the cash value of the car. Hence, this policy … (more) July 7, 2009

• What are the benefits of comprehensive coverage policy?

  Comprehensive coverage policy would cover all the vehicles that the policyholder would be driving. However, collision is excluded from this policy coverage. Typically, comprehensive policy coverage would cover damage to the car if it was stolen or was damaged by fire, flood, or animals. If the policyholder wishes to have a low premium for this coverage, he/she should pay a … (more) July 6, 2009

• What is the significance of property damage liability car insurance policy?

  The property damage liability car insurance policy provides cover if the policyholder’s car had damaged the property of another person. Normally, it would the car of that person but it could be the fence, the house, or any other property that could be damaged in an accident. This policy would provide legal protection also if the other person files a … (more) July 5, 2009

• What are the features of bodily injury liability coverage?

  The bodily injury liability coverage provides protection if the policyholder is responsible for the bodily injuries or death of others. If the other party filed a lawsuit against the insured person, this policy would offer a legal defense. However, this policy would cover only the medical bills, pain and suffering, and loss of income. The damage to the cars and … (more) July 4, 2009

• What are the basics of car insurance coverage?

  Car insurance coverage comes in various types. Still, it would not be difficult to decide which type of car insurance coverage would suit a particular person. At the outset, the exact needs that are required to be protected should be assessed. Normally, the car insurance coverage is purchased to protect the insuring person and the family members from losses due … (more) July 3, 2009