WYAIP
Auto Insurance
An informational
guide on WY AIP assigned risk
and preferred risk Pennsylvania automobile insurance.
Where
you live or, more precisely, where you
keep your car at night has a bearing
on your chances of having an accident
or becoming a victim of theft or vandalism.
That's why a vehicle owner in Manhattan,
New York, pays a higher rate than the
owner of an identical vehicle in Black
Mountain, North Carolina.
Other
factors affecting regional insurance
rates include time and efficiency of
police response and law enforcement,
local road and traffic conditions and
the quality of local medical services.
Most insurance companies factor in the litigation
rates in a given area--that is, how
many lawsuits are filed, go to trial,
are settled out of court and for how
much.
Why are rates different
for different cars, even if the cars
cost the same?
Vehicles
are also grouped into categories according
to their chances of being damaged, vandalized
or stolen. Insurers generally consider
the size and type of vehicle, as well
as the value and the cost of repairs
which vary greatly, even on vehicles
that cost about the same amount. Therefore,
it is assumed that a new sport utility
vehicle is expected to hold up better
in an accident than a sports car or
a subcompact or electric hybrid car.
Putting
insurance aside for a moment, safety
is key when buying an automobile. Your
life and everyone who rides with you
depends on it! Some cars are considered
safer than others because of their performance
record in safety tests and real accidents.
That
is why you consumers should research
insurance coverage before you buy your
car. It helps you to understand the
actual cost and indicates those vehicles
with good safety records. Your insurer
will ultimately reward you for putting
safety first.
What is "no-fault"
insurance?
No-fault
insurance is a system adopted in some
states that essentially bypasses the
conventional legal procedure which finds
fault in an accident. This is the procedure
by which you hire a attorney, file suit
and possibly go to court to prove the
accident was the other guy's fault.
No-fault simply does away with the concept
of one party or the other being at fault--no
lawyers, no court, no judge, no jury,
no lengthy lawsuits against the other
party. This is considered beneficial
to taxpayers, because it eliminates
costly legal proceedings that the state
must manage, and to insurance policyholders,
because it helps keep rates down.
If you
are insured in a no-fault state and
have an accident, you don't go after
the other driver. You contact your own
insurer and file a claim. Your own insurance
policy guarantees you immediate compensation
for damages, medical expenses, lost
wages, essential services, rental car
arrangements etc.
The type
and range of no-fault coverage varies
from state to state. What defines the
limitations of no-fault policies can
differ in two important areas:
- Threshold--The type of
damage or injury or the cost of
repair or recovery that triggers
the need for legal action.
- Mandated--Benefit Level
The package of benefits (medical,
wage loss, replacement services
and other expenses) your state requires
you to carry.
The details
of no-fault insurance can be complicated.
Contact your agent or state's insurance
department for further information.
No. Some
states, while not mandating auto insurance,
have what is known as financial responsibility
laws that require all drivers to be
able to pay for any damage or injury
they may cause. However, carrying liability
insurance is still the best way for
you to meet your state's financial responsibility
requirements once you know what they
are.
UM and UIM policies are offered by law
in all states, including no fault states.
In fact, some states require all motorists
to carry this coverage in order to gain
protection from inadequate insurance
coverage of other drivers that may not
carry enough or higher limits as the
majority does; i.e., 100-300-50,000.
First,
call the police to the scene to be sure
all pertinent information is properly
recorded. Your nerves will be shaken
right after an accident, and it helps
to have a calm and knowledgeable person
walking you through the necessary details.
Then,
contact your agent or policy holder
services or claims number usually on
your ID Card immediately and ask
about filing a claim. If you followed
all the recommended guidelines and procedures
when you bought your policy, you should
be covered within the benefits and or
limitations of that policy. Remember,
your car insurance policy is designed
to protect you and anyone in your vehicle.
If the cost of your physical damages
or personal injuries exceed the amount
your policy will pay for, it may be
time to take legal action against the
other party. Even if you have no-fault
insurance, sometimes the only way to
be compensated is to place blame and
responsibility where it belongs. That
is why it is best to get a police report
documenting the incident and any witnesses
statement while it is fresh in their
minds. This will preserve that moment
in time and remove any room for doubt
later in the legal process.
It is
better to have the police report and
not really need it , than it is to need
one for court and not have one because
it would have taken another thirty minutes
to an hour extra at the incident scene.
Technically,
in most states your insurer can cancel
your policy only if:
- you fail to pay your premium;
- you lose your driver's license;
- you are guilty of material misrepresentation
during the application process i.e.,
you fail to notify your insurer
of a recorded violation, such as
a drunken driving, or possession
of drugs or any illegal activity
offense; or
- you fail to report a substantial
change of risk, such as buying a
new high performance sports car
to replace an old high mileage family
sedan.
However,
your current insurance company may legally choose not to renew
your policy for a variety of reasons.
Do you have a bad driving record? Have
you received a lot of speeding tickets?
Have you ever been caught driving drunk?
Not only are these scenarios considered
unsafe and illegal, they are justifiable
cause for your insurer to label you
a bad risk and refuse to renew your
policy. Some underwriters may feel compelled
to cancel policies after only one accident.
Where
do you live? Has the neighborhood changed
in the last few years? Have the accident
or crime rates risen noticeably? As
regions are reassessed periodically,
their status could change and you could
suddenly find yourself living in a higher
risk area, where your insurer's rates
may not be adequate to cover losses.
Even
"good" drivers can find themselves in
the position of being dropped by their
current carrier. Reasons range from
a couple of moving violations, or multiple
accidents, or other serious violations
that make you a high risk to situations
outside your control, such as when insurers
in your state are suffering severe business
losses. Overall rises in claims or losses
can cause insurers to become highly
selective in determining whom they can
afford to offer to insure.
That
is why it is important to note that
if you are licensed to drive, by law,
you are eligible for insurance. However,
your options for new coverage may be
limited. Each state has created and
regulates a market of last resort for
those who cannot otherwise obtain coverage.
These groups have various names, depending
on the state you live in, such as assigned
risk automobile insurance plans or the
residual market, or the high risk pool.
Your assigned risk insurance agent or broker will know more about the
particulars in your state.
Regardless
of the reason you were dropped or cancelled
by your insurer, you need to act immediately
to get another policy. Under no circumstance
should you drive your vehicle without
knowing one hundred percent that you
have current insurance. Call your local
agent to help you find new coverage.
If you do find yourself in the assigned
risk residual market pool, the price
may be higher but it may be your only
alternative in maintaining your freedom
to drive.
The most
obvious way to maintain your low risk
status is to keep a clean driving record.
If you've been in an accident, consider
taking a defensive driving course. Even
those of us who have been driving for
years rarely know the simple tricks
to preventing accidents through defensive
driving.
Also, look into purchasing special safety
and security features for your car,
such as anti-lock brakes and an alarm
system, or try OnStar. Your assigned risk insurance
agent can give you further tips on how
to convince your insurer you're a safe
driver.
Insurers
often discount their rates in order
to encourage good driving practices
and the use of safety and security precautions.
Depending on the insurance company,
you can often lower your rates from
5 to 55 percent.
Sometimes the investment you make in
your vehicle is worth the discount,
and sometimes it's simply worth some
peace of mind. For example, the purchase
of anti-lock brakes merits a discount
from nearly every insurer, but the discount
probably will not pay for the brakes
which cost several hundred dollars during
the normal life of your vehicle. Anti-lock
brakes are touted, nonetheless, as a
life-saving feature and deserves serious
consideration when safety is a top priority.
Insurers generally offer discounts for:
- Safety Features Anti-lock
brakes, air bags and passive restraint
systems i.e., automatic seat belts.
- Defensive Driving Clean
violation record, driver's education
courses for teenagers and defensive
driving or accident prevention courses
for adults insurance discounts for
the latter are required in some
states.
- Security Systems Alarms,
electronic locks, VIN etching and
automotive disabling devices.
- Changing The Driving Habits
Try commuting by public transit,
using a company vehicle for work-related
travel and car-pooling.
- Formal Agreements Not to
Drink and Drive The availability
of a discount for signing such an
agreement varies among insurers
and states, however is a powerful
idea that works.
- Buying Home Owners and Auto
Policies from the Same Company
If you own a home and an automobile
and you are insured by two different
companies, check into the cost of
carrying both policies by one insurer.
Your agent can give you guidance
as to which insurers offer discounts.
This will always offer your the
best buy, so put it in your corner
when shopping for rates
You can
also lower your insurance rates by requesting
higher deductibles, which is the amount
of money you pay out of pocket before
you make a claim. Increasing your deductibles
on collision and comprehensive coverage
from $100 to $250, or even $500, will
bring your rates down. Moreover, you
may not need collision and comprehensive
coverage if you drive an older car.
Ask your agent which discounts are available
to you.
How does adding drivers
to my policy affect my rates?
The more
people you allow to drive your vehicle
on a regular basis, the greater the
chances of your vehicle being in an
accident. Teenagers are especially expensive
to insure because they are the least
experienced drivers.
A driver's-ed course can help ease the
burden of insurance costs since it teaches
your teenager defensive driving techniques.
If your child's high school does not
offer driver's-ed, try to find one offered
by another school or a private firm
in the area. After all, the cost of
driver's-ed could be cheaper than the
extra cost of your insurance. Many insurers
offer "good student" discounts as well.
An adult's driving experience can also
affect your rates significantly. Don't
assume that every adult you know has
been driving since age 16 or 17 or is
a competent driver with a clean driving
or insurance record. Again, taking a
defensive driving course is a good way
for adults to prove they are also responsible
drivers, thus lowering their risk and
their insurance premium rates.
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