Insurance Blog

Women drivers could face a 40 per cent rise in their car insurance premiums in the EU.

New EU rules which raise women's car insurance costs have been slammed as "gender equality for gender equality's sake".

London MEP (Member of the European Parliament) Marina Yannakoudakis said: "Only in the EU could penalising both women and men be seen as a kind of fairness."

Ms Yannakoudakis, Tory spokesman in the European Parliament on women's rights, hit out on the day that new "gender-neutral" pricing rules came into force.

The rules follow a European Court verdict on sex discrimination and affect areas where different standards apply to the sexes - notably car insurance and pension ages.

Applying equality rules means that men are likely to get lower pension annuities, while women will pay more for car insurance where traditionally they are considered safer drivers and therefore pay lower premiums than men.

Ms Yannakoudakis said women drivers could face a 40 per cent rise in their car insurance premiums, with female drivers under 30 set to be hit hardest. Male pensioners could be left up to $10,000 worse off in retirement.

She said: "This ruling is gender equality for gender equality's sake.

"It flies in the face both of common sense and the overwhelming evidence that women drivers represent a lower risk to insurers.

"Women drivers who have not already changed their policies should shop around to ensure that they get the best deal."

It was in March last year that European Court of Justice judges in Luxembourg rewrote the rule book for insurance companies by banning risk assessment based on gender.

Using differences between men and women as a risk factor in setting premiums for car and medical insurance and pension schemes breaches EU rules on equality, declared the judges.

The verdict forced changes in the current standard practice across Europe of basing insurance rates on statistics about differing life expectancies or road accident records of the sexes.

The Association of British Insurers estimated that the decision will actually reinforce price discrimination, with women drivers under 26 in the UK facing at least a 26 per cent rise in car insurance rates, with a 10 per cent drop in rates for men.

Up until now, discrimination in setting insurance rates was explicitly permitted under EU equal treatment rules, which stated that discrimination was permissible "if sex is a determining risk factor ... substantiated by relevant and accurate actuarial and statistical data".

But the judges decreed that equality provisions set out in the Charter of Fundamental Rights of the Lisbon Treaty took precedence.

 Heart and thoughts go out to all the affected.

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On December 14, 2012, Adam Lanza shot and killed 26 people, including 20 children and 6 staff, at Sandy Hook Elementary School in the Sandy Hook village of Newtown, Connecticut, and then killed himself. The school shooting occurred after he had shot and killed his mother, a volunteer at the school, at their nearby Newtown home. It was the second-deadliest school shooting in U.S. history, after the 2007 Virginia Tech massacre.

After shooting his mother Nancy Lanza, age 54, Adam drove her car to the school. The killing of his mother at their house made the overall death toll 27, in the day's rampage, not counting Adam. His older brother Ryan Lanza was mistakenly identified as the shooter in early reports by media organizations, and was later voluntarily questioned by the New Jersey Police, the Connecticut State Police, and FBI, though he was not considered a suspect or taken into custody. Ryan's identification was found on Adam Lanza's body.

Auto Liability Coverage

Auto liability insurance coverage pays for the damages suffered by the other parties in an accident for which you are found to be at fault and you are legally responsible. Like accidentally injuring someone, or for damaging another vehicle or other property in an auto accident.

Liability insurance does not cover any expenses related to damage to your property, or any injuries you may suffer. All states require a minimum amount of liability coverage in order to legally drive a vehicle. In some states, you can avoid buying liability coverage if you can prove you have the personal financial resources to cover the minimum requirements levied by the state. Liability insurance covers you when driving any vehicle you own, or if you drive someone else’s car with their permission.

Auto liability coverage falls into two categories:

    Bodily Injury Liability - which covers medical expenses, pain and suffering, lost wages, and other special damages.
    Property Damage Liability -- which covers damaged property, and may include loss of use.

Liability car insurance also pays legal defense and court costs.

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Personal Injury Protection (PIP)

This auto insurance coverage pays the reasonable and necessary medical expenses for covered persons for treatment due to an auto accident. Personal Injury Protection, or PIP, is sometimes called “no-fault coverage.”

PIP is a complement to bodily injury liability coverage in that it covers approximately 80% of medical expenses including rehabilitation, funeral costs, Lost earnings, and Replacement of services (For example, child care if a parent is disabled.).

Where it differs from bodily injury liability is that it covers you, your passengers, or anyone authorized to drive your vehicle. It also covers you and anyone else named on your policy when driving someone else’s vehicle. This type of coverage is mandatory in 16 states. Your state’s Department of Insurance, or your insurance agent, will be able to tell you if you are required to have it. If you live in a state where it’s optional, you may want to consider adding it to your policy for extra protection.

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Medical Payments

This auto insurance coverage is available in most states. It pays reasonable and necessary medical and funeral expenses for covered persons when those expenses are related to an auto accident.

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Collision Coverage

This auto insurance coverage helps pay for damage to a covered vehicle caused by:

    Collision with another vehicle
    Collision with an object
    A vehicle rollover

A deductible is required.

Collision coverage will pay for the repairs your vehicle needs that is caused by the accident, or to replace your car altogether if the collision causes a total loss, also known as “totaling” the car. The most important thing to remember in this case is, you will be reimbursed for the current value of the vehicle, not the purchase price.

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Comprehensive Insurance

This auto insurance coverage helps pay for loss of or damage to an insured vehicle, not caused by a collision or vehicle rollover. This is the insurance coverage that pays for damage to your car caused by something other than another vehicle.

Examples of this type of damage or loss include:

    Fire
    Wind
    Hail
    Flood
    Vandalism
    Theft
    Hitting an animal
    Tornadoes
    Hurricanes
    Earthquake

A deductible may apply.

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Uninsured Motorist Coverage

This auto insurance coverage pays for damages when a covered person is injured in an auto accident caused by a driver who does not have Liability Insurance.

It covers for damages if you’re involved in an accident with a driver who: carries no auto insurance, or insured by a company that is financially unable to cover your losses, or hits you and flees the scene.

In some states this auto insurance coverage may also pay for property damage.

This type of car insurance coverage varies by state and depends upon policy provisions.

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Underinsured Motorist Coverage

This auto insurance coverage pays for damages when a covered person is injured in an auto accident caused by another driver who has insufficient Liability Insurance.

Application of this type of auto insurance varies by state and depends upon policy provisions.

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Rental Reimbursement

This coverage pays for renting a car when your auto is disabled due to an auto accident.

Daily allowances or limits vary by state or auto insurance policy provisions.

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Emergency Road Service

This auto insurance coverage pays for having your auto towed due to a breakdown.

Towing limits vary by state or policy provisions.

This information is only a general description of the available types of auto insurance and is not a statement of contract. All auto insurance coverages are subject to all policy provisions and applicable endorsements.

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Auto insurance deductible

It is the part of a covered loss that you have agreed to pay with your own money.

If you file a claim against your insurance, you will pay only the amount of the deductible. The insurance company will pay the rest - up to your coverage limit.

When choosing a deductible, you must decide how much you would be willing and able to pay out-of-pocket, if you ever had to file a claim.

Typically, higher deductibles mean lower auto insurance policy premiums.

An auto insurance policy typically covers:

    You and your spouse
    Relatives who live in your home
    Other licensed drivers who have permission to drive your insured vehicle.

Thank everyone you know. Thank your parents, your siblings, your special someone and all your friends and relatives. Be thankful for everything. Happy Thanksgiving.

Property damage insurance is liability insurance for claims brought against a person who causes damage to another's property, as by an automobile accident.

This includes not only the labor and parts costs associated with car repair, but also replacement for valuables inside the car that were destroyed or even for repairs to stationary objects you may hit like a neighbor's tree.

Some states require you to purchase at least a minimal amount of property damage liability coverage around $5000. However it is recommended to purchase higher coverage amount. Because if for example Mr. X has a $5000 property damage insurance policy and his car hit another car and the cost of repairs goes over the threshold of $5000, let's say the tolal cost of repair is $10,000. He would still need to pay $5,000 out of his own pocket.

Not only is property damage insurance a good idea, but it's a safe bet, considering the cost of replacing or repairing personal property.

collision coverage - insurance coverage that cover for the repair or replacement of the policy owner's car in the event of an accident, no matter who caused the accident. Collision coverage requires the payment of a deductible when a claim is made and is required for financing a car.

collision coverage is optional, but may be important to include it in your policy.

If you cause the accident you can't collect for damage to your car from the other driver. Collision coverage will pay for the damage, even if an accident is your fault.

The amount of collision coverage your policy provides and the cost of premiums will depend on the value of your car. Premiums are much higher for vehicles that are expensive, accident-prone, easily damaged, or hard to repair.

The insurance company is only obligated to pay only up to the car's cash value (Car Market Value before the accident - Salvage Value of the damaged car).

When to drop collision coverage?

If your premiums plus deductible are equal or more that the value of your vehicle, you can drop the coverage.

If you have a $1,000 collision deductible on a vehicle that's worth $1,000, it becomes useless since it's the total amount of your car.

Or, if your collision premium is $300 for a six-month policy term, you're paying $600 per year to insure your vehicle against damage that may never happen and you still have to pay the deductible (out of your own pocket) for example $500 that would make a total of $1,100 which is more than the value of your vehicle.

Barack Obama re-elected as president of the United States defeating Mitt Romney

Here is a nice Infographic guide from Bankrate.com on a how much is enough auto insurance.

Hurricanes Raise Insurance Premiums

Fallen trees, flooded homes and cars, these are the devastation of a Hurricane to those who got spared by Sandy you're still be affected by it as premiums may rise and coverage could be slashed for homes in affected areas insurance agents said.

"Even if you haven't been hit, that doesn't mean some of your neighbors haven't been adversely impacted by the storm and that could impact you," says Michael Barry, a spokesman for the Insurance Information Institute, which represents home insurers.

The average homeowner insurance premiums this year is $1,004. Insurers cite several reasons for the spike, including losses from claims filed in previous years and low returns on their investments.

Homeowners can still avoid high insurance premiums by increasing their deductible. However, they'll have to pay more out of pocket when they file a claim in the future.

source smartmoney.com

Damage from Sandy? Report your claim immediately

progressive.com


Online or call 1-800-776-4737.

allstate.com

Online or Call 1.800.547.8676

statefarm.com

Online or call us direct at 1-800-STATE-FARM (1-800-782-8332).



Geico

Online or call anytime at 1-800-841-3000.

Here are important steps to inspect your car and assess flood damage:

Check your oil indicator.

If the oil level is too high it may mean that there's water in the engine. Do not start or run your car it could cause severe damage.

Measure the depth of the flood water. It is possible water did not enter any parts that are susceptible to damage.

Determine how long your car was submerged. The shorter the time, the more salvageable any damaged parts may be.

Note the type of water that flooded your vehicle. Fresh water causes less damage to your car than salt water.

Check local weather reports for the temperature during and after flooding. Warmer temperatures may speed up corrosion, especially if your car was flooded with salt water.

Storm and hurricanes happens, and flood damage can happen to anyone specially if you are located near coastlines. Most insurance compay offer flood insurance through National Flood Insurance Program (NFIP).

National Flood Insurance Program (NFIP) this program let property owners to purchase insurance protection from the government against losses from flooding. This insurance is designed to provide an insurance alternative to disaster assistance to meet the escalating costs of repairing damage to buildings and their contents caused by floods.

If you live in certain areas with greater odds of flooding and have a mortgage, federal law may require you to have flood insurance. But even if you’re not required to have flood insurance your home and properties could still be at risk.

Flood Insurance Coverage:

Flood insurance covers the structure of your home and your personal property from flood damage.  However, regular water damage and flood damage can be separate, specific conditions when it comes to property insurance.

Most flood insurance policies require a 30-day waiting period before the coverage is effective. 

Impacted By Recent Storms?

If you need to report a claim from Geico or follow up on one you've already submitted, use online claims (http://www.geico.com/claims/) center or call anytime at 1-800-841-3000.

Visit Geico catastrophe center (http://www.geico.com/claims/catastrophe-center) for other storm related information.

Vehicle insurance (GAP insurance / motor insurance / auto insurance / GAP insurance / car insurance) - are insurance for cars, motorcycles, trucks, bus, and other vehicles used for roads. Insurance are purchased to provide financial protection against damages and bodily injuries resulting from traffic accidents and collisions.

It is a form of risk management primarily used to hedge against the risk of a contingent, uncertainty loss.

Terms of vehicle insurance differ from every region depending on legal regulations. Vehicle insurance may also include theft of the vehicle, and other damages sustained from things other than traffic collisions like floods, storm surges water damage, etc.

Vehicle insurance can cover some or all of the following items:

•     The insured party (medical payments)
•     The insured vehicle (physical damage)
•     Third parties (car and people, property damage and bodily injury)
•     Third party, fire and theft
•     In some jurisdictions coverage for injuries to persons riding in the insured vehicle is available   without regard to fault in the auto accident (No Fault Auto Insurance)
•     The cost to rent a vehicle if yours is damaged.
•     The cost to tow your vehicle to a repair facility.

Policies should specify each item that is covered. For instance, car insurance can be insured against fire damage, accident damage, theft, or flood damages independently.

You can check online for insurance quotes depending on the car and place of residence it can go from $450 to $1000 per year.

Insurance quotes for vehicles in the U.S. are determined by the insurance companies like
GEICO, Progressive, Allstate, State Farm etc. The sum of annual payment is calculated according to complex scheme of points and bonuses, discounting the car cost and insurance driver's history for the past year.

The lowest insurance package will cover only a part of damage in a claim, the rest of the expenses will be covered by the driver.

The minimum insurance package does not cover a lot of things like legal defense and court costs and haulage of crashed cars.