When renting a house or apartment it is important to carry renter’s insurance. Although your landlord is required to insure the unit you are renting; that does not cover your personal belongings. All it covers is the building, structure, roof, etc. You’ll need to take out an additional policy to cover your personal items.

Most landlords or leasing companies will require you to show proof of renter’s insurance before they let you move in. In addition to covering your personal belongings, it will also protect you from liability arising from an accident on the premises. If a guest in your home slips on your floor and gets injured, you may be liable. Renter’s insurance gives you this extra protection so you don’t have to worry about losing many of things you have worked hard for.

Getting a renter’s insurance policy is easy. There are many companies that offer this coverage. Spend the extra time and speak to an agent to clearly identify your insurance needs and make sure you and your personal belongings are fully protected. PoliSeek is a great place to look for renter’s insurance. They have access to many providers and will do all the searching for you to make sure you are receiving the best rate and coverage.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein.  No warranty or appropriateness for a specific purpose is expressed or implied.

Leasing a car can be a headache in itself. There are many costs that the lessee may not really consider before leasing a vehicle. Such costs include early termination fees, extra mileage fees and wear and tear charges when you return your vehicle at the end of your lease. One kind of hidden cost is auto insurance.

When you lease a car, you do not own it. You are essentially renting it from the bank. Since the bank has the main interest in the vehicle, they require you to carry certain types of insurance to ensure they are protected. When you lease a car, more than likely you’ll be required to purchase liability and collision coverage. Collision coverage covers the damage to your own vehicle.  Most state laws require you to only carry liability insurance, but since you don’t own the car, the bank can raise these requirements.

Aside from being required to carry collision insurance, you may also be obligated to carry more than the state minimum limits. Many leasing companies will require you to carry bodily injury coverage with minimum limits of $100K per person and $300K per accident and property damage coverage of a minimum $50K. These limits are quite higher than the average state minimums of $25/$50K for bodily injury and $10K property damage limits.

Gap insurance is also important when leasing a car. Gap insurance will (with some limitations) pay the difference between what you owe on your vehicle and the actual amount it is worth, if your vehicle is deemed to be a total loss. Most cars depreciate quickly and if your vehicle has been declared a total loss and you owe more than it is worth, then you will be on the hook for the remaining amount. What this means is that you will have to still make payments on a car that no longer exists as well as payments for your replacement vehicle.

Remember, leasing a car also has many advantages. But before you jump into a new lease, plan out all the costs associated with it so there are no surprises.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein.  No warranty or appropriateness for a specific purpose is expressed or implied.

 If you are involved in an auto accident, there is a 1 in 7 chance the other person involved does not have car insurance. This number is actually getting higher. There is no red flag indicator as to why so many people are uninsured, but many believe it is a combination of the state of the economy and people’s belief that they don’t need it. The fact is that if you drive a car, you need it. There is a reason that this is a law in every state. It is to protect yourself and everyone else on the road.

Although state laws require all drivers to have auto insurance, there is not much enforcement on the matter. It is true that, in many states, when you register your vehicle with the Department of Motor Vehicles, you are required to provide proof of insurance. However, once that is completed, there is practically no enforcement thereafter. Except for states that maintain an electronic database, and carriers report cancelled policies, the only way for law enforcement to find out is if you are pulled over or involved in an auto accident.

This being said, it is very important for all drivers, (who carry auto insurance) to have uninsured motorist coverage as well as underinsured motorists coverage. Uninsured motorist coverage will cover bodily injury claims to you that would ordinarily be paid by the other party’s liability insurance.  You may also buy limited protection for your vehicle, or a deductible waiver if you have collision coverage.

In addition to uninsured motorist coverage, it is very important to carry underinsured motorist coverage. These two coverages are usually sold together. If you are “lucky” enough to be involved in an accident with someone who DOES have insurance coverage, there is a good chance they only carry the state minimums. In most states, this limit is $15,000. If you are in a serious accident, the costs add up very quickly. Your health insurance may cover your hospitalization costs if you are injured, but what about loss of income if you can’t work for an extended period of time?  Having underinsured motorist coverage gives you the extra protection you need to prevent any out of pocket expenses.

It would be nice if we lived in a perfect world where everyone carried the proper amount of insurance. As you can see, we are far from that. So to ensure you and your family are protected, it is essential to carry uninsured and underinsured motorist coverage.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein.  No warranty or appropriateness for a specific purpose is expressed or implied.

If you plan on taking a trip across the border to Mexico, make sure you have Mexican auto insurance coverage. Without proper coverage, travelers risk paying exorbitant fines and possibly jail time. Buying the right type of Mexican auto insurance can be difficult due to the differences between American and Mexican laws.

One common misconception that travelers have is that their U.S. auto insurance policy provides coverage for them in Mexico. That is not likely the case. If your auto insurance company is not licensed to do business in Mexico then they will not be recognized by the Mexican government and therefore cannot provide coverage for you.

If you drive a vehicle in Mexico, Mexican law requires you to have at least civil liability insurance issued by a Mexican Insurance company. This type of insurance will cover any damage which you cause to another person or vehicle up to your policy limits. There is also additional coverage that drivers can purchase which will cover their own vehicle as well.

In Mexico, if you do not have liability insurance and you are involved in an accident, it is very likely you will have to spend some time in jail. This is because you are guilty until proven innocent in Mexico. However, having Mexican Auto insurance will not guarantee to prevent you from jail time if the details of the accident are under investigation. Due to these types of laws, most Mexican auto insurance comes with some type of coverage for legal aid and bail money.

There are many companies in the U.S. which offer Mexican auto insurance in different forms. You can purchase a regular policy just like your U.S. auto insurance; or you can buy insurance for a certain amount of days. If you are just taking a trip for a short period of time, it is better just to get coverage for the amount of time you will be visiting.

Read the rest of this entry »

Every state has different laws when it comes to car insurance coverage. These laws lay out the minimum auto coverage motorists can purchase. Depending on the state, the minimums vary as well as the type of insurance. Although these are the state minimums; it is highly recommended that you buy as much insurance as possible. Some states require you to have just bodily injury and property damage coverage and some states require you to carry those two and others, such as Uninsured/Underinsured Motorist coverage and Personal Injury protection (PIP). You can find a list of state minimums here.

Whether you use an insurance agent or go direct to the insurance carrier; make sure to go over your state’s requirements. Another thing to keep in mind is that laws change all the time. Check back with your agent or carrier to make sure your coverage is up to date.

Auto insurance is designed to protect you from any liabilities arising from an auto accident, theft, vandalism, or Mother Nature. If possible, don’t just buy the minimum amount. If you are involved in an accident, costs can add up very quickly. Always purchase the maximum necessary in order to protect yourself. Your premiums may be higher but your level of security is greater as well.

But what happens if you are on vacation in a state where the minimums are different from your state? Will you be covered? These are very common questions and people get confused. In most cases, if you are involved in an out of state car accident; your insurance carrier is obligated to extend your minimum coverage to that of the state where the accident occurred. Many carriers also extend automatic coverage to rental cars, especially when used as a temporary substitute for your insured vehicle. However, limitations apply and not all carriers cover “pleasure rentals” or will just cover liability, so be sure and read your policy or check with your agent before renting a vehicle.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein.  No warranty or appropriateness for a specific purpose is expressed or implied.

There many types of auto insurance coverage to choose from. It is very important to understand the different types of coverage in order to make sure you are properly protected. The following is a list and brief description of the main types of auto insurance coverage available.

Collision Coverage:

This type of coverage refers to your own vehicle. If you are involved in an accident which is your fault; or the at-fault party is not identified, your collision coverage will cover the damage to your vehicle. Most types of collision coverage include some sort of deductible. Your deductible is the amount of money that you will have to pay before your insurance company will pay out. For example, if the damage to your vehicle is $750 and you have a $500 deductible; you will have to pay $500 and your insurance company will pay the remaining $250.

Comprehensive Coverage:

Comprehensive coverage applies to non-accident related vehicle claims. Comprehensive coverage covers theft, acts of God, vandalism, and damage by animals. Just like collision coverage, there is a deductible attached to this type of coverage as well.

Property Damage:

Property damage coverage applies if you are at fault for an accident. Your property damage will cover the damage to any property resulting from an accident for which you are at fault for. This could be the damage to another vehicle or a fixed piece of property like a guard rail. Limits of property damage range from $5K to millions of dollars. It is very important to have enough PD coverage. If you have $5K PD limits and you t-bone a Bentley, you’re going to be on the hook for a hefty bill.

Bodily Injury Liability:

This type of coverage applies to any harm or death caused to a person; resulting from an accident you are at fault for. Aside from injuries, it also protects you from any lawsuits resulting from the injuries. Bodily injury liability will cover medical bills, loss of income, and pain and suffering. Make sure you have sufficient coverage to prevent anyone from coming after your personal assets.

Uninsured Motorist:

This coverage protects you in the event you are involved in an accident with an uninsured, at-fault motorist.  It consists of Uninsured Motorist Bodily Injury and Uninsured Motorist Property Damage coverages, which take the place of the equivalent liability coverages of the uninsured motorist.  Given the high rate of uninsured drivers, especially in urban areas, this coverage is a must to ensure complete protection.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein.  No warranty or appropriateness for a specific purpose is expressed or implied.

An umbrella policy is designed to cover high dollar claims that may not be completely covered by your regular insurance policy. Umbrella policies can protect you from lawsuits arising from an accident or severe home damage.  They provide another layer of coverage over and above your auto, homeowners, boat owners, and other policies. A good candidate for an umbrella policy would be someone who owns multiple properties or someone who has a lot of equity in their home. However, those are not the only requirements. An umbrella policy also offers reassurance for people who have many additional assets in their home, such as a swimming pool, expensive electronics equipment and much more.  Umbrella policies can also fill “gaps” in coverage not provided by your underlying policies, such as coverage for libel and slander.

Having an umbrella policy is a good way to protect you, your family and your assets. It is a good idea to purchase your home, auto, and umbrella insurance from the same carrier. By doing this you may be able to receive additional discounts on all of your policies. Consolidation with one provider can also save you time when filing a claim by only having to go through that single company; and if you have ever had to file a claim before, I’m sure you agree.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein.  No warranty or appropriateness for a specific purpose is expressed or implied.

A Reservation of Rights letter will be sent to you if there is a potential conflict between you and your insurance company while a claim is open. A Reservation of Rights letter does not automatically mean there will or will not be applicable coverage. It simply means that your insurance company is “reserving their rights” to make a formal decision on the claim until the issue is cleared up.

All insurance policies have a list of acts and events which are covered, as well as a list of excluded ones. If you look in your policy jacket, it is quite easy to find and understand. Depending on your carrier, exclusions may vary, but for the most part they are the same across all companies. Here are eight common exclusions likely found in your auto in insurance policy.

1.  Bodily injury or death caused while you are using your vehicle to carry people or property for compensation or a fee. In other words, don’t use your vehicle for any business reason if you do not have a commercial policy.

2.  Liability assumed under a contract.

3.  Bodily injury or death to an employee.

4.  Bodily injury or death caused by an intentional act.

5.  Damage to property owned by or rented by the insured person.

6.  Bodily injury or property damage resulting from your operation or use of a vehicle owned by you, other than a covered vehicle.

7.  Bodily injury or death or property damage resulting from a relative’s use of a vehicle, other than a covered vehicle, owned by a person who resides with you.

If you receive a Reservation of rights letter from your insurance company, it is best to call and speak to your claims adjuster or agent to make sure you fully understand the situation.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein.  No warranty or appropriateness for a specific purpose is expressed or implied.

If you’ve been in a car accident before, then you most likely know the importance of having rental car insurance. Rental car insurance helps reimburse you for the cost of a rental vehicle while yours is being fixed. If you don’t have rental car insurance, and your car is in the shop for an extended period of time, then you might be stuck with a large rental bill or stuck taking the bus.

Most types of rental coverages are standard across the industry. Typically, adding rental car insurance onto your auto policy is only a matter of a few additional dollars. Trust me, it is well worth it. If your car is in the shop for 2 weeks, that can cost over $400 for a rental.

 In the auto insurance industry, there are typically three different levels of rental car insurance. They are 20/600, 30/900, and 40/1200. What this means is that if you select 20/600, your limits are $20/day with a $600 maximum payout. There are some companies out there that offer additional rental car insurance if you know that you will need a larger truck or van or prefer a luxury vehicle.  Some carriers limit the coverage to a total number of days rather than a total amount.

Rental car insurance can be a little tricky if your car is deemed to be a total loss. Once your auto insurance company reaches a settlement with you to settle the total loss, depending on the company you have between 3 and 5 days left to use your rental car; even if you reach a settlement the day after the accident. That means that you may have only a very short amount of time to shop and find a replacement vehicle, which can put you in a bind.

Rental car insurance is a must have for any auto insurance holder. You can’t afford to be without it!

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein.  No warranty or appropriateness for a specific purpose is expressed or implied.                                                                                         

No fault insurance is a very ambiguous topic. Many people have a mistaken impression of what no fault insurance really is. If your state is a “No Fault” state, it is extremely important to know exactly what this means.

Many people who are at fault for accidents are very quick to say, “but this is a no fault state.” They may think that no matter who is at fault for an accident, that each person must go through their own insurance.  However, they are incorrect. No fault insurance is applied to accident related injuries. What it really means is that whether you are at fault or not for an accident, each person has the right to go through their own insurance carrier for medical related expenses.

In most no fault states, policies are required to have Personal Injury Protection (PIP) included. Most of those states have a mandatory minimum of $10,000 PIP coverage. No matter who is at fault for the accident, your PIP coverage automatically covers the first $10,000 in medical expenses resulting from the accident.  If you are at fault, PIP may be the limit of coverage for your medical expenses unless you purchase additional coverages. Such coverages include extended PIP benefits and MedPay. Although MedPay is an optional coverage; just like PIP, the benefits are available regardless of fault. MedPay covers your medical expenses (up to your policy amount) after your PIP benefits have been exhausted. You also have the right to sue the other party in most cases once your PIP limit is exhausted, if you are not at fault.  Make sure to file your claim in a timely manner as in most states the statute of limitations is three years from the date of the accident.

The following is a list of “No Fault” insurance states:

District of Columbia*
Florida                                                                                    
Hawaii                                     
Kansas                                    
Kentucky*                              
Massachusetts                         
Michigan
Minnesota
New Jersey
New York
North Dakota
Pennsylvania*  

*These states allow you to choose between “No Fault” and standard liability/tort coverage.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein.  No warranty or appropriateness for a specific purpose is expressed or implied.