Is PIP Necessary When You Have Health Insurance?

Personal injury protection, or PIP as it’s commonly known, is a type of auto insurance that covers everyone in your car in case you are involved in a vehicle-related accident. Some also would call PIP “no fault” insurance because it pays benefits such as required medical care regardless of who is to blame for the accident.

The question that often comes up is whether a person with health insurance also needs to have PIP. Consider:

- Health insurance companies many times will want you to reimburse them if you receive money from another insurer in a personal injury settlement stemming from the accident.

- Health insurance typically doesn’t cover such expenses as wages that a person loses because of the vehicle accident. PIP provides such coverage.

- The deductible on health insurance may be costly. PIP, however, requires no deductible. It pays all needed and reasonable medical expenses as long as they don’t exceed the value of the policy.

Some drivers already may have PIP. In that case, check what its monetary limits are and weigh whether they are enough to cover medical care you may need. In any case, an auto insurance agent can answer questions related to this.

What happens if you are in an accident that is not your fault? The liability coverage that is part of the policy carried by the driver who’s at fault should cover any damages you may suffer. It doesn’t matter whether you have or don’t have PIP. But what if the driver who caused the accident doesn’t have liability protection for some or any of the medical care you need? This is probably why you should have a PIP policy. That way you get the care that you must have without worrying about how the medical care bills will be paid. And it doesn’t have to be a costly policy. Coverage worth at least $10,000 is not too expensive to purchase, especially when it comes to your peace of mind.

Even if you don’t actually buy PIP coverage, sometimes you still can use its benefits. Say you’re in accident while in someone else’s vehicle and it is covered by PIP. By being in the vehicle, you should be able to make a claim to cover any medical benefits that you may need after a wreck or other mishap. Another example is if you’re in accident while driving in a state that requires drivers to have PIP coverage. Your policy automatically should provide benefits that meet the minimum limits in that state.

Since the benefits of PIP seem to be handy in a variety of scenarios, it’s better to have PIP in addition to your regular health insurance. For the relatively small price of the policy, the fear of not having protection after an auto accident is eliminated.

What Types of Damage Does Full Coverage Insurance Cover?

You will be faced with many options while you are looking for car insurance. You will certainly have many questions and concerns that can be answered by doing the proper research. Not only will you have to learn all you can about the many different car insurance companies there are out there but you will also have to learn about the different types of car insurance coverage that is available to you. You will want to familiarize yourself with the terms and options available to you so that you can make the best decision. The most common types of car insurance coverage you will see are Personal Liability, No Fault and Full Coverage. It will be up to you to decide on the type of coverage you feel best meet your needs.

When you see the term full coverage this coverage will most likely cover property damage and bodily injuries for everyone that is involved in the accident. You may also hear full coverage car insurance referred to as comprehensive coverage, collision coverage or physical damage. This type of coverage will cover almost any type of damage that may be sustained from an accident involving an automobile or not. Full coverage car insurance will also cover damage sustained from theft, fire, windstorms, vandalism and even hail. However there may be some things that your particular car insurance company may exclude. Some of the things they may exclude can be the theft of mobile radios, cd players, radar detectors, camper trailers or any other items that may not have been permanently installed into the car. You should be sure to ask your car insurance representative what items are included in your full coverage so that you can know which items you will have to insure on your own.

When it comes to car insurance that will protect you from a huge financial loss Full Coverage car insurance most certainly gives you that protection. It provides enough coverage in the case of an unfortunate accident so that you won’t have to come out pocket with a hefty amount of money that you are unable to afford. When looking for the appropriate car insurance you should definitely do the proper research on the car insurance company as well as the policies they are offering. Alongside full coverage insurance you may also want to consider getting Uninsured motorist bodily injury. This type of car insurance coverage protects you in the case you are involved in a car accident with a person who doesn’t have car insurance or is under insured. It is usually not included in Full Coverage car insurance but can be added on to your car insurance policy. With Full Coverage car insurance and Uninsured motorist coverage you are pretty much covered from every angle however you do want to consult with your car insurance representative and ask all of the questions you may have so that you know what is covered and what is not as each type of coverage may vary depending on the car insurance company you are using.

When You Should Switch From Full Coverage to Liability

When you are choosing car insurance, it can be confusing and even overwhelming. There may be many options and terms that you are unfamiliar with. You can understand car insurance a little better by familiarizing yourself with two major types of coverage. They are Full Coverage and Liability.

Full Coverage Insurance

You may hear a lot of car insurance companies recommending that you get Full Coverage car insurance. This can be very beneficial depending on your situation. Full coverage insurance covers your car if you are in an accident. Whether it was your fault or the other driver’s fault doesn’t matter. Your car will be covered. There are two parts two full coverage car insurance. One is Comprehensive Insurance and the other one is Collision Insurance. Comprehensive Insurance covers you if damage is caused to your vehicle by anything else but another vehicle. Collision Insurance covers you if you are hit by another vehicle whether it was your fault or not.

If you are still paying on your automobile Full Coverage may be the best option for you. Also if you are purchasing a new vehicle, your finance company will require that you get Full Coverage car insurance in order to keep the loan. If you happen to be finished paying for your vehicle and are a safe driver you may want to consider Liability insurance. However, if you have a teenager who will be driving your car or a person older than 75 driving your car, you may want to keep Full Coverage car insurance on your car.

Liability Coverage Insurance

This type of insurance only covers you and any damage you’ve have done to the other vehicle. If you were to get into an accident and it was your fault, Liability Coverage will cover the driver of the other car, any property you may have damaged and the driver. It will not cover the cost of your car. Therefore, if you choose this type of insurance it is best that you feel confident in the safety of your driving and are finished paying for your car.

If you are trying to decide whether switching from Full Coverage car insurance to Liability car insurance is right for you, you should ask yourself a few questions. Am I OK with replacing my car by myself if someone hits me and doesn’t have insurance? If any thing else happens to my car, such as fire, am I able to pay for another car? Am I confident in my driving skills? These questions will help you confidently choose the right coverage for you.

Esurance and Full Coverage

Is Esurance full coverage insurance?

Yes, Esurance does offer full coverage car insurance. Esurance offers a variety of insurance products, including auto and motorcycle insurance. Traditional policies usually include collision, liability, and comprehensive coverage. Keep in mind that how complete your insurance policy is will depend on your individual needs. For example, full coverage for you might not entail medical payments coverage because you already have a quality health insurance plan. Similarly, if you have a large amount of assets, you might require higher amounts of liability protection in order to fully protect your financial well-being.

Full Coverage vs Liability - Which Is Better

At the opposite ends of the car insurance spectrum are full coverage and liability only. In reality, there are many steps in between these polar opposites and there are even multiple levels of full coverage and liability only. However, car insurance can best be understood by first fully comprehending the differences between these two extremes.

Liability Only Car Insurance

Car insurance is regulated at the state level, and therefore, each state has its own guidelines concerning the minimum car insurance coverages that are required. One thing that is for certain, though, is that all states have laws regarding the minimum amount of liability coverage you must have in order to legally drive your vehicle. But what is liability coverage? It is insurance that covers damage you cause to other people (outside of your car) and their property.

State minimums are expressed in three parts. For example, Colorado's legal minimums are 25/50/15. The first number refers to the maximum amount your insurance company will pay for injuries sustained by a single individual, per accident; the second number refers to the maximum amount your insurer will pay for all injuries in a single accident; and the third number is the maximum amount your insurer will pay for property damage, per accident. So for Colorado, this translates into $25,000 of bodily injury coverage per victim; $50,000 of bodily injury coverage per accident; and $15,000 of property damage coverage per accident.

Keep in mind that these are the state minimums - it may be wise to carry coverage in excess of them. Keeping with the Colorado example, if you were in an accident that caused $100,000 in bodily injury damages to another motorist, your insurance would only cover the first $25,000. For the other $75,000 the injured motorist could come after you! This may or may not apply in so-called "no-fault" states, of which there are 12.

Full Coverage Car Insurance

What is known as "full coverage" is actually two forms of coverage on top of liability - comprehensive coverage and collision coverage. A motorist can elect to have comprehensive coverage without collision, but not collision without comprehensive. A car insurance policy with liability and comprehensive coverage would be something in between the legal minimum and "full coverage."

Comprehensive coverage is sometimes referred to as "other-than-collision" coverage, or OTC. Obviously, it covers damages to your vehicle that arise from something other than a collision. Examples include theft, fire, weather damage, etc., but the insurance companies confuse the issue by including accidents with animals as part of comprehensive coverage, rather than collision. The logic behind this is that comprehensive is designed to cover things that are less likely to be your fault.

Collision coverage is an optional add-on to comprehensive - although it isn't optional if you still owe money on your car! Finance companies require borrowers to carry full car insurance coverage on their vehicles.

Getting Something for Your Money - That's the Name of the Game

Too many people look at insurance as an annoying expense. In reality, it is an investment - a financial product - and it should be viewed as such. Whether you want liability only, full coverage, or something in between, you need to make sure you are not paying more than you have to for the coverage you need. The best way to ensure you're getting a good value is by comparison shopping online. In many cases, customers are able to save money while simultaneously increasing their coverage.

Car Insurance Premiums - Where Do They Go? How Insurance Companies Use Them

All states require drivers to have at least some form of minimal liability coverage, but would you want auto insurance if you didn’t have to have it? Assuming you’re sane, the answer is yes. And if you’re not, you probably shouldn’t be behind the wheel of a car to begin with.

A Popular (But Tired) Myth - Insurance Companies Are “The Bad Guys”

Auto insurance company executives are one of the few groups of people who are probably happy about higher gas prices. For one, “pain at the pump” discourages people from driving, which means fewer accidents. But more importantly, oil company CEOs have become the new “bad guys” of the business world, replacing the insurance execs.

Part of the reason that insurance companies have such a bad reputation is that there are some shady agents out there. There are even some disreputable firms, and not just the fly-by-night companies, either. But in reality, the overwhelming majority of insurance agents are good people, just like your friends and neighbors. In fact, you probably have at least one friend or neighbor who is an insurance agent. And even more so, the vast majority of the major insurance firms are solid, 100 percent ethical companies devoted to servicing the needs of their clients.

What We Have Here Is a Failure to Communicate

So where does this myth come from? Generally, from the public’s lack of understanding just what insurance is and how it works. Schools don’t teach Insurance 101, and this is to the public’s detriment. Then again, since insurance companies are hurt most by the misunderstandings and misinformation, the industry should take it upon itself to educate the public. Until then, here’s a basic primer:

Insurance is pooled risk. The financial risk posed by an auto accident - the property damage, medical bills, legal judgments for “pain and suffering,” etc. - is too great for most individuals to bear. Therefore, people voluntarily opt into insurance pools, wherein they pay an insurance company a “premium” in order to assume that risk on their behalf. This is an important thing to remember - the insurance company is taking risk off your hands, assuming responsibility for the damage you may cause while behind the wheel.

The people who are insured, technically known as “insureds,” hope that they never have to file a claim. They hope that their premiums will be “wasted,” in that sense. But they’re not really wasted - the premiums you pay go to pay for claims filed by other people in your insurance pool. By the same token, any claims you may file and are awarded come from the premiums paid by your fellow insureds.

What About the Bottom Line?

Of course, the insurance business is not a charity. In the American system of free enterprise, the insurance companies deserve to make a profit. In fact, they deserve to make as much profit as they possibly can.

Who’s looking out for you, then? Well, you should be!

The capitalist system works when you make sure that you’re an informed consumer. There are hundreds, possibly thousands of insurance companies out there competing for your business. They will give you the best deal they can because they want your premiums. What’s to stop them from not paying your claims? Think about it - a company that treated its customers poorly wouldn’t be able to survive in a competitive market place, would it? Competition not only keeps prices down, it keeps companies honest too.

The best way to look out for yourself is to review your insurance coverage at least twice a year. Use the internet as a comparison shopping tool. Make the insurance companies compete for your business, not the other way around. In this way, you are in control, and the so-called “bad guys” are at your service.

Are SUV’s harder to insure or more expensive?

Not only do they have a higher ticket price at the dealership and cost a mint to fill-up, SUV’s are also a magnet for high insurance premiums. On average, it costs 10-20 percent more to insure a SUV than a regular car.

So why the big increase?

More often than not, SUVs cause more damage to other vehicles when they are in accidents. Chances are that a goliath SUV will do some pretty hefty damage to a two-door convertible. This raises the payout rates for the insurance company, and therefore liability premiums increase.

Even if you are a safe and careful driver, SUVs have historically fared much better than their counterparts in accidents. This is not to say that a driver in an SUV is safer necessarily, but they feel safer. And this feeling of safety is exactly the reason why many drivers still choose to drive the behemoths. It is estimated that about 12% of all vehicles on US roads are Sports Utility Vehicles.

But SUVs aren’t without their own inherent dangers. While progress has been made in safety design and roll-over prevention in the past years, SUV’s still have a greater potential to flip during high-speed turns, in collisions, or when avoiding accidents. They sit higher off the ground, which means their center of gravity is less balanced and they become “top-heavy”. To the insurance company, rollover accidents are very costly in terms of vehicle repairs and personal medical expenses.

SUVs have also recently become very coveted among car thieves, costing millions of dollars in replacement claims. According to the Highway Loss Data Institute, the Cadillac Escalade was the most stolen vehicle in 2004. To replace the Escalade, an insurance company can pay upwards of $18k.

Repairs on an SUV are also quite expensive. Insurance companies will pay quite a bit of money towards body and engine work, even in the most negligible collision. This is because SUVs do not have to meet the bumper standards set by the federal government’s in terms of withstanding fender benders. Just a slight tap on the rear can cost hundreds of dollars.

The high risk factors of SUVs equate to a potential for high medical, liability, and settlement payments for the insurance company, and they must recoup those costs in the form of higher premiums.

Tips for Insuring Your Teen Driver

Money Saving Tips

Auto insurance companies often have certain stipulations that, if your teenager meets, can save you money. On average male teenagers will cost you more than a female. In order to avoid such high premiums here are some tips:

• Comparison Shopping- Don’t always settle on the insurance company you have in order to insure your teen driver. There is no law stating you and your teenager have to be with the same insurance company. If your current company offers you a discount for adding a family member then perhaps you should look into this offer. Just remember, comparison shopping is always a good decision.
• Higher Deductible- The higher your deductible the lower your premium. It may be a bit of a gamble, but if you choose a $1,000 deductible your premium could be manageable.
• Conservative Cars- Certain cars, like sedans, offer much better insurance rates than other cars. Buying your teenager a sports car will only add to your insurance nightmare, but buying them a Toyota Camry will soften your insurance blow.
• Study, Study!- If your child maintains good grades, usually over a 3.0 GPA, you can get your premium discounted by up to 15% in most cases.
• Driver’s Ed- If your teenager graduates from a driver’s education class you will most likely see a break on your premium. It is also a much quicker way to go about getting one’s drivers license.
• Out of Towner- If your college student goes to an out of state college, or some scenario in which you know they won’t be driving a car, you can take them off your policy and save a whole bunch of money.

Be a Good Parent

You are going to have to live with the high rates of teenage driving, because there is no way to avoid it. You could prevent your child from driving, but that seems like an unrealistic solution. Your best bet is to work with your child and make them a better driver so you can save money in the long run. Make sure your child limits the amount of passengers they drive around, avoids driving at night and make sure they are not texting or talking on their cell phone while driving.

Premium Increases for Teenagers & Speeding Tickets

How much would my car insurance premiums increase if I have one accident on my record and just received my first speeding ticket? I am 19 years old and have an excellent GPA.

It is impossible to quote you an exact number because your premiums depend on so many variables. Insurers all have different policies on how tickets impact premiums. While some companies have a first-ticket forgiveness policy, others will raise your rates as soon as they learn about the ticket. The fact that you are 19 and have an accident on your record means that your rate increase will probably be higher than it would for other drivers. Unfortunately, your GPA might win you a small discount with your insurer, but it will not be enough to combat the rate increases that come with accidents and moving violations. One option you might consider is attending traffic school if you can. You might be able to remove the ticket from your record, in which case your premiums would not go up.

I just got a speeding ticket. How much will this change my car insurance rates? Should I try to fight the ticket?

Every insurer will have a different policy on rate increases following a moving violation. If you have an otherwise clean driving record, some insurers might forgive your first moving violation, meaning it will not affect your rates. Similarly, you might have the option of attending traffic school to get the ticket taken off of your record, in which case it would also not impact your premiums. If you have this option, take it. Alternatively, you could go to traffic court to try to fight the ticket. When it comes to fighting traffic tickets, showing up is half the battle. Chances are, the officer who wrote you the ticket won’t show up, and even if he/she does, you have a good chance of getting the ticket reduced to a non-moving violation. A non-moving violation will cost you less money in fines and will have no impact on your insurance rates.

I Just Got My First Ticket. Will My Car Insurance Go Up?

Everybody makes mistakes. But, when it comes to driving a motor vehicle, mistakes that result in a ticket can cost you big time.

It’s important to realize that driving is not a right, it is a privilege. If you abuse the privilege, chances are you will end up with a suspended driver’s license. You’ll also end up with a lot of fines and attorney fees. In fact, some traffic infractions will land you in jail, such as drinking under the influence of drugs or alcohol or leaving the scene of an accident you were involved in.

Although each state has their own set of driving rules, most of the 50 states utilize the Department of Motor Vehicles (DMV) point system. It’s easy to find out the point system utilized in your home state. Simply visit the DMV website at www.dmv.org.

Typically one or two tickets for minor violations won’t land you in too much hot water. Depending on the violation, it may not even affect your car insurance. Things like rolling through a stop sign or expired license plates generally will not raise your insurance rates.

However, if the traffic ticket you received is due to reckless driving or leaving the scene of an accident, your car insurance might be cancelled or the premium could increase substantially.

If your state utilizes the DMV point system, it’s important to realize that points remain on your driver’s license for three years. If you incur too many violation points within a certain period of time, your car insurance rates will increase. Worse yet, you could end up losing your license altogether.

Many of the common traffic violations have a point value assigned to them. Every time you receive a ticket, the points are deducted from your license. Generally, if you accrue 12 points within 12 months, your license will be suspended for 30 days. If you accrue 18 points within 18 months, your license will be suspended for 90 days. And, 24 points within 36 months will cause you to have your license suspended for one full year.

If you receive a ticket for leaving the scene of an accident with damage, or a speeding violation that results in an accident, six points will be deducted from your license. Typically, these types of violations will result in a car insurance premium increase.

If you receive a ticket for reckless driving, running a red light, exceeding the speed limit by 16 mph or more, or attempt to pass a school bus that has stopped; four points will be deducted from your license. Typically, these types of violations will result in a car insurance premium increase as well.

If you receive a ticket for exceeding the speed limit by 15 mph or less, violating child restraint regulations, or driving with an open container; three points will be deducted from your license.

Again, these will vary depending on the state in which you reside, but this generalization should help give you an idea of how the DMV point system works.

You can’t escape having violations reported to the DMV. However, there are a few things you can do to clean your driving record up.

If you receive a traffic ticket that results in points against your license, you might be able to attend a driver improvement course. Many states offer this course online and taking it can provide multiple benefits.

Typically, these classes take four hours to complete. However, if a judge orders you to enroll in a course, you may be required to participate in a course that lasts for eight hours.

By taking the driver improvement course, you will be eligible to receive a fine reduction, which might be as much as 18 percent. Additionally, no points will be deducted from your license, nor will your car insurance rates increase. This applies only if there was no accident associated with your traffic ticket.

Obviously, it’s best to observe and obey all traffic laws and avoid getting a ticket in the first place. However, if you do obtain a ticket, by all means visit the DMV website and educate yourself about the options available.