Reader’s Question:

Hi I just moved to Utah. Another vehicle hit mine while it was backing at a small parking lot. The other party has conceded that it wasn’t my fault. Why do my vehicle accident insurance and I have to pay for the damage to my car?

Kathy

Provo, UT

Kathy, that’s because Utah is considered a no-fault state. It grants no-fault first party benefits to drivers in any accident with some limits. It also restricts the right to sue. Simply, it means your own vehicle accident insurance will cover your losses without taking fault into consideration. If the injuries and damage to property you have incurred are severe, you may still opt to sue and demand that the other party be financially responsible. The whole point of a no-fault system, though, is to discourage taking auto insurance issues to court. The advantage of this restriction to sue is that it expedites the process of making claims.

Under this state regulation, drivers typically sue if the injuries or vehicle damage meet certain conditions or what is commonly called a threshold. The state defines which accidents may be considered “severe” and the standards vary from state to state. For instance, some states consider the length of time one has been disabled or unable to work. In some states, it doesn’t really matter. Utah, as well as Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota use a monetary threshold, in which severity is defined by medical bills you have to pay for.

Reader’s Question:

How important is it to get vehicle insurance for courier services? Do they have insurances that have specific coverage for couriers?

Benner

Miami, FL

Courier services are pretty much up to a challenge whenever they deliver goods to an assigned certain destination. They must, whenever possible, protect the contents of their vehicle in order to preserve the quality of goods in its entirety. They must and should assure the safety of the goods they carry all the way to delivery. This is one reason why you should get vehicle insurance for your courier services.

Insuring your courier service vehicles could prove to be very expensive. But mind you, you have to go through all of this in order to avoid huge losses when accidents cannot be prevented. It would be wiser to protect your investments and have the security you need rather than gamble your earnings on a point of uncertainty. If you are wise enough to protect your investment, you could expect coverage for every loss that your establishment sustains. Plus, it could increase the demand for your services as many clients would put enough trust on your company knowing that you have an insurance that protects their interest. Courier insurance will provide enough coverage not only for your vehicle, but also for the goods in transit along with your vehicle. No business owner would want to shoulder any expenses that are beyond common operational cost. Claims for damaged goods are one of these expenses. Therefore, you’d want to avoid any of this. That is why you want to keep your vehicle and its contents insured.

In order to get discounts and to take extra effort off your responsibility, you have the option of availing fleet insurance. It is insurance that cover your vehicles for special purposes. It covers multiple drivers and multiple cars starting from two cars or more. You will need to know exactly how much coverage your insurance company would give under one package. Some of the types of coverage needed to be included in customizing courier insurance are: Haulage cover, Hire and Reward cover, third party liability, and comprehensive.

Reader’s Question:

What happens if I lend my car to a friend and she was involved in an accident? Who will pay for the damages? Will my friend’s vehicle liability insurance cover for any damages sustained by both parties?

Anne

Portland, ME

If you lend your car and your vehicle sustained damages from an accident while your friend was driving it, your own car insurance will cover these damages. You will be held liable for any accidental damages inflicted by a collision as you were the primary owner of the car and the primary insured. As you confidently lend your car, you also lend your insurance with it. You cannot avoid liability just by stating the fact that you are not the one behind the wheel. An auto insurance policy especially Collision coverage follows the car and not the owner regardless of who is driving.

However, if the third party’s at fault, his vehicle liability insurance could cover for the damages. But, assuming you have a No Fault policy, your insurance policy will take effect first. You can ask for reimbursement, if the third party agrees to take charge and be held responsible. But, should your friend be held responsible, your insurance policy will pay for all the damages including third party injury. This will be paid for by your liability insurance.

But, if your friend has his/her own insurance policy, he/she could cover an excess of any damages exceeding your policy limits.

Whenever possible, lend your vehicle only to a friend whom you have always known as responsible driver. Remember: Even though you are not the actual driver when an accident happens, it will still have an impact on your premiums. It will be put on record and you can expect a rise in premiums when this happens.

Reader’s Question:

Can you help me find the best vehicle insurance around town? Can you give me some guidelines in looking for best possible deals out of vehicle insurance companies?

Therese

Coral Springs, FL

There is no particular “best” when you are looking for vehicle insurance. Perhaps, the best vehicle insurance, as close as it gets, are insurance policies that are tailored mainly by you. Insurance companies don’t have the same rates when it comes to insurance prices or coverage. But your input will have a significant effect on your insurance policy, as well as on your insurance premiums. For instance, if you want affordable quotes, then it would be wise to drop unnecessary types of coverage from your policy.

Some particular types of coverage you should think about dropping are collision and comprehensive. You may want to drop them altogether if you have an old vehicle. These two types of insurance coverage is accounted for 40% cost on premiums. If your vehicle insurance premiums will exceed the actual worth of your vehicle, you may want to consider dropping this. But before you do that, make sure that you have the minimum required liability insurance that your state recommends. This is to avoid any problems in the future. Your specifications, decisions, and capability to make payments are the primary determinants of your insurance premiums and the level of your coverage. Now, these vehicle insurance companies go to extreme lengths to tailor an insurance policy that will fit to your budget and needs.

However, given that you are the one holding the key for the best vehicle insurance, there are a lot of other factors that can help you decide on what insurance policy to carry. First, of course, would be the company’s reputation and credibility for handling issues. This includes providing coverage and claims to their clients. In order to have an idea of the who’s WHO of insurance companies, you could take a look at their rating on the net. You can also find free online quotes around the internet that could help you decide on what to include in your policy. There are many comparison quotes over the net that will give you an overview on the pros and cons of purchasing an insurance policy. Always compare rates as you can find your preferred policy in variety of price ranges.

In the end, price does not matter. As long as your insurance policy satisfies your need and puts you in a secure position, you can call it your own best vehicle insurance.

Reader’s Question:

I have been having thoughts on how to compare vehicle insurance from different insurance companies. I happen to chance upon some customers and agents conversing over combined single limit and split limit. They seemed to be very confused about the policy and they argued constantly over this topic. To find clarity, what do these two have in common or how do they differ? They both sound the same to me, though I do not know a thing about them.

Constance

Kenner, LA

I am glad you asked that question because many individuals have found their reserves dwindling because of excessive coverage due to the fact that unknowingly, they are taking more than what they need. In the old days, there is a saying about biting off more than you could chew. Now, many people find themselves in realization that they, too, are one step closer to pitfalls. Deciding over insurance coverage is not an easy task; it is a long term commitment, therefore, it is wise to compare vehicle insurance. Before you do so, you should look at your investments and most importantly your budget. Do not buy unnecessary coverage just because you are uncertain about the policy. You have to do your part by reading and inquiring about the vehicle insurance policy. If you are confused or uncertain about your policy, ask questions and verify the details with the help of an agent.

Now, going back to the question of choosing your limits, first thing to think of is your budget. Pick a policy or set limits that would be most affordable to you in accordance to your budget. Part of your job as a client is to know about the policy, setting limits, and to know how it fits your budget. However, deciding over combined single limit and split limit is sometimes a matter of choice and not a matter of price. Like for instance, many individuals choose safety/security over economy; this is one major factor when choosing their preferred policy. Nevertheless, you should weigh these factors considerably and carefully for this would have a long-term effect on your payments.

If you prefer economy, you could try purchasing a combined single limit. A combined single limit is a combination of liability for property damage and physical injury in one single limit. Many who prefer economy over security choose a combined single limit because it is more flexible in payment terms and this fits well into their budget. However, in an event when an injured party demands a higher claim, to an extent which exceeds your policy limits, you have to pay for it out of your own pocket.

On the other hand, if you prefer security over economy, a split limit may be well suited for your needs. A split limit has a split liability for property damage and bodily injury. However, this could mean more costs as you have a separate liability coverage for each one. But if you are protecting your investments and avoiding suits and claims, this may be perfect for your needs.

Reader’s Question:

Why do I need a lot of vehicle insurance quotes instead of just asking for one from the insurer of my friend’s vehicle?

Jasmine

Madison WI

Not everyone wants to be bothered with price comparisons. But there are many who could benefit from getting a few hundreds of dollars in savings. If you are one of those people who have enough to pay for an expensive insurance, then there is no need for you to get different vehicle insurance quotes. But if you can make use of a little savings, then, getting a lot of vehicle insurance quotes will ensure that you don’t end up paying more for what you can get at a lower price. The purpose of having different vehicle insurance quotes is for the prospective buyer to make a more intelligent purchase. Like when you are shopping for flip flops, you won’t simply buy the first one you see. You’d like to see other designs, styles and prices. This is similar to finding the right vehicle insurance. The policy has to fit your needs and your financial capacity. The quote offered by your friend’s insurer is just one proposal that many in the market can top.

Vehicle insurance is an important part of any motorist’s life so make sure that you have the right one. Spend some time and effort in finding the right fit for your needs so that you won’t end up sorry for getting a bad deal.

Reader’s Question:

What should I know before canceling my old vehicle insurance?

Denny

Reno NV

Changing insurers can prove expensive if you do not plan it properly. An old vehicle insurance coverage that has not been properly cancelled may damage your credit report and even your driving record with the Department of Motor Vehicles. If you do not give notice to your old insurer, it could report to the DMV that your vehicle insurance has lapsed causing a lot of misunderstanding with the agency. Usually, a cancelled insurance before the expiration date incurs a fee, the amount of which will be determined by the insurer. When giving notice to the old carrier, send them a written notice instead of calling your insurance agent. A written notice avoids miscommunication and misunderstandings concerning the policy number, your name, or even your contact number. You’d like to avoid having another person’s vehicle insurance canceled because of wrong information taken over the phone. Once the company has addressed your request, confirm that your policy has indeed been canceled. Take note of the old plan’s cancellation date and make sure that the effective date of your new insurance coincides with the cancellation to avoid being in a period wherein you are not covered. Accidents could happen any time and it may choose to occur at a time when you’re not covered.