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Auto Insurance - If you are involved in an accident.

Your driving record and claims history will be major factors in determining your auto insurance rates. Protecting against risk will cost more if you have cost the carrier money due to at fault accidents.

 

If you have more than one accident or ticket on your driving record, you'll likely use a nonstandard company, which charges higher rates. In addition, companies can add penalties - called surcharges - to your premium for major driving offenses and accidents resulting in property damage of $1,000 or more. Surcharges are mandatory for rate-regulated companies and stay on your premium for three years.

 

What to do with your insurance if you have an auto accident:

an accident can be surcharged from three or seven full policy years If you are found at fault (Depending on what state you are in), an accident can be surcharged from three or seven full policy years.

 

your rates go up, consider buying a junker If you are found at fault and your rates go up, consider buying a junker if you can bear driving it for awhile. The premiums will be much lower.

 If a ticket is issued, plead not guilty and try to a least fight it. You can not get in more trouble for fighting a ticket. Plus if you fight your ticket your insurance can not go up until you become guilty.

 

use comparison quote sites Use our quotes above so that you can see for yourself how much things can cost or how much you can save.

 

Auto insurance policy cancelation terms you should know

Accident: A sudden fortuitous event. Often used to refer to a collision or insurance event. Also an unexpected, unforeseen event not under the control of an insured and resulting in a loss.

 

Accident Forgiveness: In most states, customers who have not had an at-fault accident in the previous five years qualify for this program. Accident forgiveness means that some insurance carriers won't add a surcharge to your premium after your next at-fault accident.

 

Accident Frequency: The number of times an accident occurs. Used by actuaries to predict losses and appropriately base premiums.

 

Accidental Death Benefit: A supplementary life insurance policy benefit that provides a death benefit in addition to the policy’s basic death benefit if the insured’s death occurs as the result of an accident.

 

At-Fault: The party that is legally liable for the damages in an accident.

 

First Party Benefits: This pays policyholders and others covered by the policy in the event of injury, no matter who caused the accident. The benefits can include medical expenses, loss of income, funeral and death benefits. This may also be called Personal Injury Protection. Hazard: Anything that increases the chance of an accident occurring.

 

Driving Record: A report from the agency that issues your driver's license, listing accidents and violations that appear on your driving record. This report is used to verify information provided by insurance applicants and policyholders.

 

Hit and Run: An accident caused by someone who does not stop to assist or provide information.

 

Insurance Fraud: The act of falsifying or exaggerating the facts of an accident to an insurance company to obtain payment that would not otherwise be made. Common types of insurance fraud are staged accidents, exaggerated injuries, and inflated medical bills.

 

Liability Adjuster: The liability adjuster handles the investigation of the accident. These adjusters' responsibilities can include collision payments, property damage payments, and bodily injury settlements. In some states, these adjusters may also handle the medical portion of your claim.

 

Loss of Use: Compensation to a third-party claimant for financial consequences resulting from the inability to use property as the result of accident-related damage.

 

Loss Payee: A person or entity with a legally secured insurable interest in another's property, usually a financial institution that loaned money to buy a car. The car is the loan collateral. If the auto is damaged in an accident, loss payments will be made to you and to the loss payee on your policy.

 

Medical Payments Coverage: Pays medical expenses related to an automobile accident. This coverage is subject to the terms, limits and conditions of your policy contract.

 

No-Fault Insurance: May pay for your medical treatment, lost wages, or other accident-related expenses regardless of who caused the accident. This coverage is subject to the terms, limits and conditions of your policy contract and is not available in all states.

 

Per Occurrence Limit: This refers to the cap amount an insurance company will pay for all claims arising from a single incident. In an automobile accident, it comprises bodily injuries sustained by all parties. When Bodily Injury coverage is purchased in split limits, the second limit is the "per occurrence" limit: e.g. $100,000(per person)/$300,000(per occurrence).

 

Per Person Limit: This refers to the cap amount an insurance company will pay for any one person's injuries arising from a single incident. In an automobile accident, it comprises bodily injuries sustained by each person. When Bodily Injury is purchased in split limits, the first limit is the "per person" limit: e.g. $100,000(per person)/$300,000(per occurrence).

 

Personal Injury Protection: May pay for your medical treatment, lost wages, or other accident-related expenses regardless of who caused the accident. This coverage is subject to the terms, limits and conditions of your policy contract.

 

Pre-accident Condition: The state of the vehicle before the accident, including damage not related to the accident, mileage, options, and other factors.

 

Property Damage Liability Coverage: Pays for damage to someone else's property resulting from an accident for which you are at fault and provides you with a legal defense. This coverage is subject to the terms, limits and conditions of your policy contract.

 

Release: Legally binding contract stating that all obligations past, present or future arising from a particular accident or occurrence have been fulfilled.

 

Rental Reimbursement: Optional coverage that helps pay rental vehicle costs when your insured vehicle is disabled as the result of a covered accident or loss. Available to most policyholders for an additional premium.

 

Split Limit: Any insurance coverage with separately stated limits for different types of coverage. Example: an automobile liability policy of 100/300/50 provides a maximum of $100,000 bodily injury coverage per person, $300,000 bodily injury coverage per accident, and a property damage limit of $50,000 per accident.

 

Stacking of Limits: The application of more than one policy limit to the same loss or occurrence. In some jurisdictions, courts have required stacking of limits when multiple policies, or multiple policy periods, cover an occurrence. For example, Uninsured motorist bodily injury limits of $100,000/300,000 on two policies owned by the same person may be added together to pay a loss. In this event, the total amount of coverage available for an accident would be $200,000/600,000.

 

Surcharge: An extra charge applied by the insurers usually charged for accidents, moving violations, or specific risks not handled by normal rating factors.

 

Tort: A private wrong or harm (other than a breach of contract) committed against another, resulting in legal liability. A tort is either intentional or accidental (negligent). Automobile liability insurance is purchased to protect one from suits arising from unintentional torts.

 

Unsatisfied Judgment Fund: Some states have established laws to reimburse those injured in auto accidents that have been unable to collect from the responsible party.

 

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