Why This Lawyer Says You Should Buy Car Insurance From An Independent Broker

I don’t sell car insurance, but as a lawyer practicing in the field of personal injury I frequently see people suffer because they have the wrong insurance coverage. Often, this happens because they purchased directly from an insurance company instead of an independent broker.

Many of my clients who have been seriously hurt in a car accident were struck by someone who had no insurance or only the minimum liability insurance coverage, which is 25,000 in New York and much less in many other states. Unfortunately, many of my clients were sold insurance policies with liability limits of 100,000 or 300,000, but were not sold matching uninsured and underinsured coverage.

Just this week, yet another new client had this problem. My client was a pedestrian crossing the street when she was struck by a car which fled the scene. The driver was caught shortly after leaving the accident, but the owner of the car only has the New York State minimum liability insurance of 25,000 and my client has serious injuries consisting of many broken bones including a fractured arm, leg and skull.

My client owns a car with liability insurance limits of 300,000, but she purchased the insurance from GEICO whose salesperson didn’t sell her underinsured coverage. GEICO does not use independent insurance brokers, but sells insurance directly to consumers through in-house sales agents.

For a small fee, my client could have purchased underinsured coverage of 300,000 which would have allowed her to recover 300,000 for her injuries instead of 25,000. Ironically, she did not need the 300,000 liability coverage to protect her assets. However, since you cannot buy underinsured coverage higher than your liability coverage, I would have advised her to purchase 300,000 liability coverage for the sole purpose of being able to purchase 300,000 underinsured coverage.

I have had many clients in this situation who lost their jobs because of serious injuries and incurred substantial debt. If they had matching underinsured coverage, the additional money available to pay their claim would would be a big help to pay their bills and get their life back together.

Underinsured motorist coverage will pay you money from your own automobile insurance policy if you have been hurt in a car accident by someone who was negligent for causing your injury and who had less liability insurance coverage than you did. Uninsured motorist coverage will pay you when the other car did not have any insurance coverage or the identity of the other car is unknown.

Underinsured and uninsured coverage is inexpensive and usually available in limits that match your liability insurance coverage. It is not available in amounts greater than your liability insurance coverage.

Underinsured and uninsured coverage is so important that a couple of states now require coverage limits matching your liability insurance limits, unless you decline the coverage in writing. Several years ago, I suggested to several New York State senators that they enact a similar law in New York.

I have also seen many clients who were not sold the maximum medical payments insurance, which costs me only 2.01 per month on my car insurance policy. This is particularly important for people who do not have a good health insurance policy. It is also beneficial for passengers who do not have health insurance.

Why should you buy car insurance through an independent insurance broker? The courts have defined the reason. There have been several “malpractice” lawsuits against insurance companies for failure to offer underinsured and uninsured motorists coverage limits matching the liability limits. However, when the insurance company sells directly to consumers, these cases have gone in favor of the insurance companies. The courts found that when a consumer buys insurance directly from an insurance company, rather than an insurance broker, the consumer is only buying insurance and is not paying for advice.

When you buy auto insurance from an independent insurance broker who represents several different insurance companies, you get the advantage of an insurance professional who can evaluate your needs and advise you accordingly. Additionally, only an independent insurance broker can provide you with a choice of insurance companies and premiums, so you get the best coverage at the lowest price.

Whether you buy your car insurance directly from an insurance company or through an independent insurance broker, always make sure that you purchase matching uninsured and underinsured motorist coverage and the maximum medical payment benefits.

Why is it getting harder to find car insurance for young drivers?

A number of car insurance providers have ceased to cover less mature drivers, so it is now essential to search around for car insurance for young drivers. A spokesman for the ABI, The Association of British Insurers stated that the reasons that certain companies had ceased to insure younger drivers was simply that they were far more likely to make a claim than older drivers.

These claims accounted for a disproportionate amount of money paid out by insurance companies when compared to more mature drivers, this according to ABI representative Malcolm Tarling.

UK government statistics show that back in 2004 there were over one hundred and fifty deaths of drivers who were aged sixteen to nineteen.

As a result of what insurance company’s see as a greatly increased risk, they have steadily increased premiums to match that risk, but now many companies are simply turning their backs on providing car insurance for young drivers, and not issuing them with policies.

It has been very well documented that younger drivers are considered by insurance companies to be very high risk, they are not only more likely to be involved in accidents, and they are also more likely to be involved in accidents resulting in injury and death. Younger drivers are known to statistically drive at higher speeds, not obey traffic regulations, and drive in a more reckless manner than people of their parents age.

Over the past 30 years the number of young people driving on the countries roads has increased several times over, and with this has come an increase in risk to the insurance companies, this risk has been passed on in the form of higher premiums for
car insurance for young drivers, which is often paid not by the young person but by their parents.

The ABI has urged the government to take steps to protect young drivers such as imposing a mandatory one year learning period before obtaining a full licence.

The organisation also strongly suggests that parents should avoid taking out car insurance for young drivers using the old ploy that the young driver is an occasional user of the vehicle, when in reality they are the main driver, a young driver should only be added to the parent’s policy in this way when they are in fact, an occasional user of the vehicle.

The ABI say, that it is false economy to make such an addition to their policy as the younger driver is likely to make a claim, therefore, hurting the parents standing with the insurance company.

They went on to say that it is important that if the young person is the main driver, they should take out a policy in their own name, which may be more expensive at first, but if that young person is responsible driver they will over a period of years establish their own insurance record, thus reducing the premiums over time.

Therefore the bottom line is, car insurance for young drivers is becoming harder to find, and when you do find it, it will probably be more expensive, so it pays to shop around for the best deal available.

There are a vast amount of online insurers that only deal with car insurance online and it is with one of these that you can get the cheapest deal when it comes to paying out your premium.

By making a comprehensive search online or by using a specialist online broker – you are able to quickly and easily compare quotes from many companies, however you should make sure that when you search for the best deal you take into account what is included in the policy.

Policies do vary in what they offer and many online companies offer incentives to get you with them, this is when you can take advantage and make the biggest savings on your premium. Never just jump for the cheapest policy before reading the small print, while a policy might seem cheap if you take into account that you would have to add on to the policy this of course will boost up the cost of your premium.

To start your search online use one of the popular search engines for car insurance, there are a lot out there and the majority of them will allow you to make a comparison for just one site by simply typing in a few details.

Of course the first thing you will have to decide is the type of insurance that you require for your needs, the most popular types include third party or fully comprehensive. Which you choose to take will depend on many factors such as your age, the type of car you are driving, the age of the car and the amount of cover that you require.

There are many add-ons that you can include in your car insurance, for example damage liability, breakdown cover and medical cover. While some companies will entice you by throwing in basic components others will charge you extra for adding these, so look around before buying.

Once you have decided which type of cover you want and any extras you might choose then the majority of sites will let you fill in the application online. Filling in an application online is the easiest and quickest way to get your cover, of course you will have to answer questions for the company to base their quote on and it is essential that you give them honest answers. If you have points on your license then it is essential that you tell them this.

Besides providing car insurance the majority of sites give plenty of excellent free advice when it comes to what policies involve and many explain the coverage within the policy, so you should always read this. However be aware also that many often hide exclusions and limitations within the small print so check this out too.

Tips To Avoid Car Insurance Premium Increases & Becoming Assigned Risk

Below are some tips to reduce your auto insurance bill, prevent substantial premium increases and avoid becoming assigned risk.

Claim Reports: You know about credit reports, you should also know about claim reports. C.L.U.E. (Comprehensive Loss Underwriting Exchange), is a claim report service provided by ChoicePoint, Inc. ChoicePoint, Inc. states on their web site “C.L.U.E. is a claim history information exchange that enables insurance companies to access prior claim information in the underwriting and rating process. C.L.U.E. Personal Property reports contain up to five years of personal property claims matching the search criteria submitted by the inquiring insurance company. Data provided in C.L.U.E. reports includes policy information such as name, date of birth and policy number, and claim information such as date of loss, type of loss and amounts paid.”

Tip: C.L.U.E. reports contain information on claims history by a residence address. Just like credit reports, a C.L.U.E. report may have errors. It is advisable to obtain a copy of your C.L.U.E. report at ChoiceTrust.com to check your report for errors.

Credit reports: Insurance companies are now looking at credit reports to determine future premiums. They have determined that people with better credit scores have fewer claims. Consequently, if you have a poor credit report you may find yourself paying more for car insurance.

Tip: Always make at least the minimum payment for your bills on time, particularly your insurance bill.

Glass Coverage: Most auto insurance salespeople recommend “full” glass coverage for an additional premium, when you purchase collision coverage for your car. They remind you how much it costs to replace all your windows if broken by a vandal. What they do not tell you, and it is unlikely that they would even know (I would only trust the answer from an underwriter, not a sales representative), is whether your insurance company will use a previous glass claim to increase your future premium and whether they will report your glass claims to C.L.U.E.

Some insurance companies will report glass claims to C.L.U.E. and then use these claims to raise your premium or even worse, cancel your car insurance policy making you assigned risk with a substantial premium increase. Allstate notified me that after four claims in less than five years, they terminated my auto insurance policy and then offered to sell me coverage in their Indemnity Company with a shocking premium increase. These claims consisted of two claims for a broken windshield, one for a stolen and recovered car and one accident.

I had a sports car and had to endure a total premium increase over a period of four years of approximately 12,000 and remain claim free before I became eligible for coverage outside of the assigned risk pool. I wrote a letter to the president of Allstate complaining that they should not have considered my glass claims when canceling my car insurance because the glass claims were made under a separate part of the policy for which I paid a separate and additional premium. Allstate responded in a letter stating “Although this claim activity does not indicate that you were directly at fault in each loss, the frequency and severity of the above losses was not within our range of acceptability. After careful review, I regret to inform you that we cannot reverse our original decision regarding the above policy. We have however continued to offer coverage in our Indemnity Company.”

Tip: Check with the underwriting department of your insurance company to see if they will consider glass claims when assessing premiums or if they report glass claims to C.L.U.E. If yes, do not make a glass claim. The two windshields which Allstate provided me with were aftermarket windshields which would have cost me less than 300 each. During the last 30 years of my driving history, I have experienced two broken front windshields, one broken rear windshield and two broken side windows. While the financial risk of totaling a car can be substantial, the financial risk of replacing a windshield is comparatively insignificant. It does not make sense to file a glass claim if it will increase your premium. You may even want to decline this coverage altogether and save the premium.

Tip for leased vehicles: Some lease agreements require that the car be returned with an OEM windshield. If you lease a car and replace a front windshield using your “full” glass coverage, insist that the insurance company provide you with an OEM windshield from the manufacturer. If you pay for the windshield yourself, check your lease agreement carefully to see if you must use an OEM windshield from the manufacturer or if you can use an aftermarket windshield. Some people with leased cars who have replaced a windshield with an aftermarket windshield are shocked, when they return their car, to find that the leasing company is charging them 800 for a new OEM windshield, even though the aftermarket windshield is in perfect condition.

Car Rental & Towing Coverage: While it may be a good idea to have this coverage, it is not always a good idea to use it. Some people have realized that this coverage is not just available when an accident has occurred. For instance, some people have used the car rental coverage when their car was in a repair shop or the towing coverage when their car broke down on the road. As with glass coverage, using this coverage may be the same as filing a claim.

Tip: Check with the underwriting department of your insurance company to see if they will consider rental or towing claims when assessing premiums or if they report these claims to C.L.U.E. If yes, do not use car rental or towing coverage unless you have had an accident, in which case it will be part of the accident claim. If you are concerned about towing costs when your car breaks down, you can buy one of the roadside assistance memberships such as the one available from AAA which provides additional benefits not provided by your automobile insurance policy.

Youve now got your drivers license and for months, you eagerly search for a new car. Once you find your dream car, youre ready to take it out on the open road. Or are you? In many countries, it is compulsory to purchase auto insurance before driving on public roads and property. Auto insurance protects a third party against the financial consequences of loss, damage, or injury caused by any vehicle.

When first purchasing auto insurance, it is important to understand all aspects of the insurance. First off, an excess has to be paid. This is a fixed amount of money that must be paid each time your car is repaired through the insurance policy. A compulsory excess is the minimum excess payment that your insurer will accept. This varies according to your own personal details, driving record, and of course, insurance company. A voluntary excess is an excess that you agree to pay on top of the compulsory excess in case of a claim on the policy. A bigger excess reduces financial risk for the insurer, and thus they can offer lower premiums.

Depending on the location of the insurer, premiums may be government mandated or may be based on statistical data. The premium may vary based on many different factors that the insurer may deem will have an effect on the cost of future claims. These factors include gender, age, driving history, and usage of the car.

Because men average more distance driven per year than that of women, they have a higher proportionality of accident involvement. This leads insurance companies to offer lower premiums to women as opposed to men.

Teenage drivers have no driving record, and so they are less experienced on the road. This is the reasoning behind offering these teenagers higher driving premiums. However, these premiums may be lowered if the teenager decides to go through further driving training on the training that was required to obtain his or her license.

Car usage is also a large factor in determining premiums. By logic, it can be deduced that with more usage of the car, there is more potential for accidents, and thus more potential for claims on the policy. Insurers can estimate car usage by odometer, GPS, and OBDII (OnBoard Diagnostic) based systems. With the odometer system, customers buy prepaid insured miles and keep track of them on their odometer to determine when they need more. The GPS system tracks the usage of the car as it moves and records the distance it has travelled. The OBDII system works by utilization of the TripSense device. This connects to a computers OnBoard Diagnostic port, which is in all cars built after 1996.

Auto insurance may be both a blessing and a curse. Financially, it may save you a lot of money and keep you safe; however, auto insurance, like health insurance, can result in a lot of disagreement with the insurer and the insured. It may be wise to do you research before committing to one insurance program.

When it comes to buying your car insurance without a doubt the cheapest deals can be found online, this is simply due to the fact that companies who sell car insurance online dont have the overheads that high street companies do or have to have large amounts of staff and so can pass these savings onto you by offering cheaper premiums and incentives.

Not only can you get the cheapest premiums but you can do so all from the comfort of your own home, you are able to shop online at a time that suits you 247. Along with this you can also take full advantage of being able to get almost instant quotes and also compare a huge range of premium costs with a lot of companies at the same time. By doing this you ensure that you get the policy that you need while making the most savings. Another added benefit to shopping online for your car insurance is the amount of information you can find when it comes to the many different types of policy available.

The type of policy that you buy for your car insurance covers you for exactly the same as it would had you bought it from the high street, the only difference is that you make savings. When making a comparison check for the cheapest premiums it is essential that you make sure you know what the policy involves.

Some companies throw in incentives to get to sign with them such as offering free breakdown cover for a specified amount of time or similar offers and this is where you are able to make the biggest savings.

Bear in mind that if a policy is exceptionally cheap them it will probably only cover the very bare essentials and somewhere in the small print it could state that you will have to add additional cover. This is when the cheapest isnt always the best, as having to add on cover can boost up the premium considerably.

Before making comparisons for premiums you will of course have to know what type of car insurance you require and of course what that cover will give you. There are two main types of insurance and these are fully comprehensive which is the most expensive as it generally covers just about everything and third party which covers for incidents such as the theft of your car.

There are many other additional components when it comes to car insurance and you would be wise to check the options that are available. Of course the cover you need will depend on such as your age, type and size of car and how old the car is.

Lost your car? Well, provided your car has been insured, you can always get a reimbursement. That’s the good thing about car insurance. It means insurance against loss due to theft or traffic accidents. Getting car insurance would guarantee payment of expenses incurred when your vehicle is involved in accidents, or is subjected to vandalism or theft. It also ensures you are able to cover the costs of potential damages or injuries.

Zero percent car insurance

Car insurance dealers may often make announcements of zero percent auto financing, and you may be tempted to go for this great deal. It would be a dream to drive away a new car with zero percent financing. This means a 15,000 car may fetch you savings in thousands, versus five-year car insurance with interest. However, you should know that this 0% car financing is not available for everyone. Many people even make the mistake of buying a more expensive car with no cost car insurance, thinking there will be no interest that they have to pay. Unfortunately, this happening is very rare.

Zero percent car insurance takes credit report into consideration to qualify for this insurance financing, and the guidelines for credit are extremely demanding too. There would be so many conditions of eligibility along with this offer that eventually only a few can actually get a great deal with the dealers. It is seen that car insurance with an interest rate offers a much better deal. Most of the time, this zero percent car insurance is offered only on some select vehicles; mostly on slow vehicles as the dealer’s main aim is to get rid of the vehicles.

If you are a first time buyer, or you have a limited budget for your car, you should carefully investigate the different insurance policies available, as some might suit you better financially. So do some research, as it is possible to get cheap motor insurance as well as keep the premium on the policy very low.

Tips on car insurance

Some important tips to remember are:

Higher excess: You can opt yourself to pay a higher excess in the event of an insurance claim.
Do thorough research on the internet, as online car insurance is a lot cheaper.
You get cheaper insurance if you get an approved immobilizer fitted in your car.
Get an insurance broker, as he can help you pick the right insurance.
If you are a student, you may gain some concession from the companies.
You can also get a cheap car with a small engine, as the more costly the car is, the higher the premium will be.
By building and protecting a ‘no claims’ bonus you will have a great impact on your insurance rates.
If your car was very cheap, it may be cost-effective to have third-party, fire and theft insurance, instead of fully comprehensive cover.
Never give your price first, and never take the first quote from an insurer.
If you can, get your own copy of Credit Report and show it to the insurance companies, as they will charge you to get it for you during the approval process.

Auto insurance in general, which includes car insurance is an insurance consumers can purchase for cars, trucks, and other vehicles. Its mainly meant to provide protection against losses incurred as a result of car accidents and also thefts of vehicle. It also includes losses arising due to natural calamities. To have your car insured is mandatory by law. When you insure you get a “policy” which is based on a variety of factors including the type of car you drive, as well as what kind of insurance you want, as these policies are actually a package of different types of insurance coverage. They can be classified as:

Liability – This coverage pays for accidental physical injury of the body and damage to others property. Injury damages include medical expenses, pain or suffering and lost wages. Property damage includes damages to the automobile. This coverage also pays for defense and court costs. State laws fix how much liability coverage you must purchase, but you can also get more coverage if you wish.

Collision – This insurance pays for damages to your vehicle caused by collision with another vehicle or object.

Comprehensive – This coverage pays for losses or damages to the insured vehicle that doesn’t occur in an auto accident. The possible types of damages comprehensive insurance covers include loss caused by fire, wind, hail, flood, vandalism or theft.

Medical Coverage – Pays medical expenses regardless of whose fault it was as long as the expenses are caused by an auto accident.

PIP – Personal Injury Protection (PIP) – This coverage pays medical expenses for the insured driver, regardless of whose fault it was, for treatment due to injuries arising in an auto accident.

Uninsured Motorist – Pays for your car’s damages when an auto accident is caused by another driver who doesn’t have liability insurance.

Underinsured Motorist Pays for your car’s damages when an auto accident is caused by someone who has insufficient liability insurance to settle all your claims.

Rental Reimbursement – This type of insurance will pay for a rental car if your rented car is damaged due to an auto accident. Often this coverage has a daily allowance to be paid for at the time of renting a car.

Certain insurance policies club together a number of these types of coverage. Depending on the laws that exist in your state you have to choose the insurance you want for your car. Even though the state may not require extensive insurance, extra coverage may be worth the expense as it is possible that you may be straddled with thousands of pounds because of an auto accident.

It is important that you do take good care of your car. After all, possibly like most people, it would be one of the most expensive investments you might ever have spent on. To protect you and your car as well for any other excess expenses due to accidents or other untoward incidents, vehicle insurance could do just the trick. However, keep in mind that to actually purchase insurance for your car would also mean that you would have to spend a considerable amount.

Vehicle insurance, or car insurance or auto insurance or whatever term you may want to call it, is mainly used to provide protection against losses that could be incurred as a result of being part of traffic accidents. You see, accidents could lead to huge damages which equate to huge expenses as well. Vehicle insurance covers that so that you would not have to shell out any more money. In fact, there are even some insurance companies whose coverage includes you, your car, and even other parties included in the accident.

Of course, you should try choosing the right kind of auto insurance for your car. Remember that the wider and the greater the range of coverage also means that you would have to spend more. If you have a limited amount of finances, you can try to simply ask around and inquire about auto insurance quotes. Also inquire about the areas covered. Try to find out also if you have the option to include or not to include certain areas.

Bodily injury liability insurance covers the other partys medical bills if you actually hurt someone in an accident that was purely your fault. If you have property damage liability as part of your auto insurance, you would not have to worry much if you drive your car into another car or into a streetlight or bus stop.

Although these days it’s pretty easy to arrange your car insurance online, comparing quotes at the click of a button and paying by credit card for instant cover, one ever present difficulty still remains: the high cost of insurance policies. The fact that having car insurance in place is both a legal requirement and a sensible idea doesn’t detract from the annoyance of having to pay what seems to be an exorbitant sum, and most of us would jump at the chance of reducing the bill.

To do this we need to know what factors insurance companies use when deciding how much our premiums will be.

Perhaps the most important influence on the level of your premium is your own history as a driver. If you’ve a history of having accidents, then naturally you’re a higher risk to the insurer and so they’ll charge you more. Worse, if you’ve been convicted of a motoring offence such as speeding or driving while under the influence, then your insurance will cost you even more – especially if your licence was withdrawn.

On the plus side, a history containing no black marks such as accidents will result in cheaper insurance as you build up a ‘no claims’ discount over the years.

The next most important factor is what kind of car you’re trying to insure. Naturally, more expensive cars will cost more to replace, and so the insurance will cost you more too. This isn’t the whole story though, as other features such as engine size, the availability of cheap spares, and the difficulty of repair will have an influence too. Finally, some models of car are well known for being easier to break into or steal than others – the insurance companies are well aware of this and will adjust their quotes accordingly.

How you use your car will also affect the price you pay for cover. If you rarely drive and have a low annual mileage, then your premiums can be cut as you’re on the road for less time, and therefore have less chance of needing to make a claim. City drivers may also have to pay more compared to those who drive in quieter areas.

Where you keep your car is important too – if you have a secure parking area, preferably one that keeps your vehicle out of sight and under cover, then your risk is lowered, as will be your premiums. Cars that are regularly parked at the roadside are at a higher risk of being stolen or involved in collisions, and so will be more expensive to insure.

One final point to cover is that of how attractive your car is to thieves, and not just in the obvious way of how desirable your vehicle is! An expensive car with a good security system including an alarm and window etching etcetera will be more of a hassle for criminals to profit from, and so is less likely to be stolen than a cheaper car with little or no security. Also, a car featuring plenty of gadgets such as an expensive audio system or satellite navigation will attract greater interest from potential thieves.

So as we can see, even though car insurance is an expensive business, it’s not always as simple as it seems, and by looking at what insurers want in a ‘perfect’ customer, you may be able to drive down your premiums.