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Monthly Archives: August 2017

Car Insurance Areas of Coverage

Bodily Injury Liability: Minimum requirements for this type of coverage are generally listed at the lesser of $15,000 per person or $30,000 per accident. That is to say that the insurance company will cover this much of the medical expenses related to the accident. It is highly recommended that drivers consider more realistic policies providing the lesser of $100,000 per person or $300,000 per accident.

Property Damage Liability: Will cover the damage done to vehicles in an accident. As mentioned above, the minimum required is typically $5,000 per accident, but experts recommend a policy for $50,000-$75,000 per accident.

Collision Insurance will cover the damages done to your vehicle when it has collided with another car or stationary object. It is not generally required that a driver carry collision insurance, but a personal injury lawyer will highly recommend it. A car that is totaled in an accident can represent a loss of $2000-$70,000 dollars depending on the value of the vehicle. That is a lot to lose as compared to the relatively small expense of an insurance policy. In addition to coverage levels, one should consider the amount of deductible that can be afforded after an accident. Deductibles can range from $100-$1,000.

Comprehensive Insurance protects the driver should the car be damaged by something other than a crash. For instance, hitting a deer, getting stuck in a hail storm, or having a tree topple over on the car are all unexpected expenses mitigated by insurance. Again, this is not typically required, but is highly recommended.

Medical Payments This is insurance that covers medical expenses not covered by health insurance. It is not mandatory, but it can protect the driver and his or her passengers in the event of an accident.

Auto Mobility and Insurance

Real-time Information

Telematics can calculate every minute detail of the client’s driving style, including every hard brake, rapid acceleration, parking style, etc. Analytics will amalgamate, analyze and interpret this data, simplifying it to understand the driving patterns of the client and the risk(s) involved. This driving information will be shared with the insurance provider who can use the same to allocate the insurance premium amount for the respective client.

Vehicular insurance companies have realized the difference that real-time information makes in processing claims. With the ability to capture real-time data in the form of images, videos, driving information, etc., there will be adequate information to process a claim or to decide the insurance amount for a client. It will eliminate the possibility of modified data and increases the accuracy of information analyzed.

Time and Efficiency

Time is everything. Waiting for weeks for insurance agencies to process a claim can be painstaking. Insurance companies will soon provide every client a more personalized and expedited service. Mobile devices will enable evaluation of claims or consultation with clients in their comfort zone. In the case of an accident, real-time data can be captured in the form of videos or images, eliminating the possibility of improper claims or incomplete information, which can prove to be a loss for both parties. Automation will reduce paperwork and redundancy. At the same time, it will increase efficiency and accelerate processing of claims.

Management of Data

With the reduction of paperwork and introduction of technologically advanced analytics frameworks, managing vast quantities of data has become a child’s play. Analytics use complex algorithms and mathematical equations to organize, analyze and interpret huge volumes of information. The ability to retrieve relevant information instantaneously and accurately will save a lot of man-hours.

Beyond Insurance

Mobility solutions for auto insurers come with additional services such as roadside assistance in case of an emergency, geo-fencing for parents to monitor their teenager’s driving, customer engagement to ensure the loyalty of the client, driving suggestions and other customizable options. Insurance companies will be able to go beyond their regular services for the client’s convenience.

Auto Insurance Rates Can Climb

• Fiscal concerns

Do you experience coverage lapses due to non-payment? Is your credit score low? Both of these underscore a risk factor for the insurance company. A tendency to file any form of insurance claim also becomes a gauge for risks that the insurance companies are worried about. All of this leads to higher premium payments.

• Driving behavior

If you have been ticketed for any moving violations, speeding or reckless driving, you are a target for higher premiums. Similarly, those who file claims about serious collisions and drivers who put in above two thousand miles per month are subject to higher than average premiums.

• Additional drivers

The more drivers on your policy – particularly teenage drivers – the more you pay. Nonetheless, an independent agency will be able to find appropriate discounts for teenagers classified as ‘good students’ that you can use until your young drivers reach the age of twenty-five.

• Your place of residence

Like your homeowners coverage, auto insurance is dependent on where you reside. Due to greater risk exposure to high traffic, street conditions, climate, crime-rate and other issues, the cost of your premium may be higher. An agency that has good relations with the leading underwriters can find ways to reduce costs if you are in a risk category.

• Your vehicle Selection

If replacement and repair costs on your car is pricier than average, your premium bill reflect that. Luxury brands such as a Cadillac, Ferrari, Mercedes, Jaguar or Porsche will generate a higher premium. Additionally, if the car your purchase has a bigger likelihood to be stolen, you will feel it when paying your insurance fee. According to recent statistics, vehicles that have a bigger theft risk include the Honda Accord, Honda Civic, Chevrolet Full-size Pickup Truck, Ford Full-Size Pickup Truck, Dodge Caravan, Grand Cherokee Jeep, Toyota Corolla and the Nissan Altima.

Points can Affect Auto Insurance Rates

The point system was established to create a safer environment and penalize high risk drivers who repeatedly break traffic laws. You almost will never lose your license from a single ticket unless it involves serious charges. However if you continue to defy the law of gravity in your vehicle and pretend the highway is a practice track for your imaginary Nascar team you will be left riding a bicycle to work one day.

Insurance points are different than DMV points. Points issued by the DMV go against your driving privileges whereas car insurance companies use a formula that include DMV points as just one part of the overall risk profile. For example when you file a claim or pay late your insurance score may drop in addition to the score change when points are earned from a traffic ticket. Of course, none of these items are good and your automobile insurance rates can change regardless if you have points on your driver’s license or not.

car insurance companies use an insurance score based on typical FICO credit based scoring to help predict loss. All car insurance companies have different and complex formulas for calculating your final premiums and the insurance score is just one of them. It does pay to learn more about how the insurance score works but just like your personal credit score the way it is applied by private companies can be very different from one provider to the next.

Many people have an option to attend driving school when they get a traffic ticket and this can be beneficial for keeping points off your record. However the urban legend of how attending traffic school will also keep car insurance rates low is exactly that… an urban legend.