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What Is Full Coverage Auto Insurance?

Before getting auto insurance, you may have heard about “full coverage auto insurance” Generally, full coverage auto insurance isn’t a specific insurance policy but a combination of required and optional coverage’s. Full coverage auto insurance can help pay for damages you caused your car or other liability and medical bills whether you hit a pole, cause an accident that injures another motorist, or your car has flood damage.

While there is no combination of coverage’s that we’d call a “full coverage auto insurance, but your coverage may include:

Collision coverage: Cover the cost of repair to your car in the event of a collision. You can use collision insurance coverage whether you’re at fault or not.

Comprehensive coverage: Cover any damages to your vehicle in the event of vandalism or theft. It can also cover repair costs resulting from hail, flood, and when you hit an animal.

Property damage liability: Cover damages if you’re at fault in an accident, including property loss and repairing the other party’s car.

Bodily injury liability: Cover damages for injuries or loss you caused someone else. These damages can include lost wages, legal fees, and medical expenses.

Uninsured motorist bodily injury: Cover medical expenses and loss of earnings for injuries to passengers and drivers.

Uninsured motorist property damage: Cover the cost of repairing your car when an uninsured motorist causes the loss.

Medical payments coverage: Cover medical expenses resulting from a covered collision no matter who is at fault.

How Much Does “Full Coverage” Auto Insurance Cost?

The types of coverage, limits, and deductibles you choose will determine your cost. Remember that you can get an auto insurance policy with extensive coverage at a more affordable rate than you might think. We suggest you consult with your agent to get an estimate.

How Do Insurers Calculate Actual Cash Value?

Insuring and protecting your home is vital. While some homeowner’s policies pay out the “actual cash value” of a damaged or lost item in your home, most policies pay for the replacement cost of an item. But what exactly is actual cash value?

What Is Actual Cash Value?
An actual cash value policy is used to determine the amount you will get if a covered item is damaged or lost. If you have actual cash value coverage, the amount of money you will get is based on the item’s value minus any depreciation. However, you need to read the clause in your contract to determine how your insurance company will value an item following a loss.

How Does The Actual Cash Value Policy Differ From Replacement Cost?
The actual cash value coverage pays what damage or lost item is worth, while the replacement cost pays to replace the same item. For instance, if you file a claim for a 55 inches television, that costs $1,000 three years. Every year 5% depreciation would apply. That means 3 years x 5% per year = 15% ($150) depreciation. The insurance company may pay $850.

For the replacement cost policy, you will get the amount it would cost you to purchase the same TV in today’s marketplace.

Why Should I Choose Actual Cash Value?
The answer is simple: money. An actual cash value policy is an affordable option. But, it may not offer adequate coverage if something is damaged. The payout you’ll get from your insurance company will likely be higher.

Is Getting A Personal Injury Protection (PIP) Worth It?

Personal injury protection protects you and your passengers in case of an auto accident, no matter who is at fault. It covers your medical bills and lost wages. While personal injury protection isn’t part of the auto insurance requirement, you can include the coverage in your insurance.

What Does Personal Injury Protection Cover?

Personal injury protection covers essential medical procedures and reasonable expenses if you are injured in an accident due to other party negligence. The types of bills covered vary and may include:

Lost wages
Wrongful death
Emotional trauma
Loss of consortium
Reduced earning capacity
Past, present, and future medical bills.

What Does Personal Injury Protection Not Covered?

Your personal injury protection won’t cover:

Damage to your property
The other drivers’ injuries
Injuries in an accident that you’re paid for driving
Any injuries or damages from an accident while engaging in a crime

Do You Need Personal Injury Protection With My Health Insurance?

If you live in a state where personal injury protection is necessary, you must file a claim under that policy before switching to your health insurance. Personal injury protection provides many benefits that you won’t get from a health insurance policy, such as coverage for funeral expenses and lost wages.

Is Personal Injury Protection Worth It?

Personal injury protection may be worth it if traditional coverage is too expensive or you need to pay out-of-pocket for bills incurred from an auto accident.

What Will Happen If Your Auto Insurance Policy Lapse?

You won’t have insurance for some period if you have a lapse in coverage. Driving with lapsed car insurance is never a good idea, and it can lead to tickets, fines, jail, or suspended license. Therefore, it’s better to keep your coverage or have the state minimum than to drive without coverage.

What Does Car Insurance Lapse Mean?

It is when a car does not have the state minimum coverage. A lapse in your insurance coverage can be due to cancellation from not renewing your policy when it expire, not paying your premiums, or getting dropped after too many tickets. A lapse in coverage means you need to reinstate your previous policy or find a new one.

What Are The Consequences Of An Insurance Lapse?

If you had a car accident while you’re not insured, you’d pay for all the expenses involved. In addition, if you’re caught driving with lapsed coverage, you could be fined, have your car impounded, or have your driver’s license suspended. Jail time is also possible. Driving with lapsed coverage will negatively impact your driving record and raise your insurance rates when you get coverage again.

How To Avoid A Coverage Lapse?

Here are some ways to avoid an insurance lapse:

Pay for your car insurance on time.
Get a premium rate you can maintain.
Have at least your state’s minimum coverage.

What To Do If Your Auto Insurance Lapse

Contact your insurer if your car insurance lapses. If you know you cannot pay the premium, your insurance company may assist you. Options such as increasing your deductible or discounts may lower your premium so that you can make the payment before letting your car insurance lapse.

Facts About High-Risk Driver Auto Insurance

Most states require drivers to have minimum auto insurance coverage. If you have a bad driving record, getting the standard coverage for your car can be challenging. Fortunately, some insurance companies specialize in providing high-risk drivers auto insurance coverage.

So, what exactly is high-risk car insurance? Who needs it? Where can you buy it? You will find answers in this guide.

What Is High-Risk Auto Insurance?

If you have been in several car accidents, have several traffic citations on your record, or even have a DWI or DUI conviction, insurance companies may classify you as high risk. These infractions suggest that you don’t drive safely and are prone to tickets and accidents to the insurance companies.

Who Are Those That Needs High-Risk Auto Insurance?

There are several reasons why people need high-risk auto insurance. However, the primary reason for buying high-risk auto insurance is poor driving records. You may also be a candidate if you:

Are a first-time driver
Are over 65 years
Are under 25 years
Have a DUI/DWI record
Have a poor credit history
Have a history of claim payouts
Were involved in a car accident
Accumulate too many traffic violations
Caught driving without having insurance
Have a lapse in your insurance coverage

There are several more reasons, but these are the most common ones.

Where Can I Purchase High-Risk Auto Insurance?

While some insurance companies won’t insure high-risk drivers, others will do. However, keep in mind that even the lowest rates for high-risk car insurance will still be higher than the standard car insurance policy. Once you have a clean driving record, insurers will feel more comfortable offering a standard policy.

Factors That Affect Car Insurance Rates

Insurance companies consider several factors when it comes to getting the best car insurance rates. Understanding the factors that determine what you pay for auto insurance can help you better understand what to expect. Some of the factors that can affect your car insurance rates include:

Who You Are

Your gender and age play significant roles in your car insurance rate. Therefore, it’s a good idea to know what to expect.

Gender: Most states in the U.S allow insures to differentiate between male and female drivers. They charge women a higher premium than men as they age and charge men more than women when they’re younger.
Age: Younger drivers have fewer driving experiences than older drivers; this makes them riskier to insure. However, the insurance rates for seniors under the age of 25 and over 65 tend to go up.
Marital status: Most companies offer lower car insurance rates to married drivers than single, widowed, separated, and divorced drivers.

Where You Are

Your location also determines the cost of your auto insurance rates. Each state has its own laws that determine the rules insurers must follow to charge for auto insurance and the insurance drivers must-have. People living in bigger cities or towns with heavier traffic are more likely to pay a high insurance rate.

How You Drive

Insurance companies only want to insure careful drivers that follow the road rules: the more traffic tickets, accidents, and other violations on your driving record, the higher your rate.

The Type of Car You Drive

Your car’s model, make, and safety features can all affect your insurance rate. A higher-priced vehicle costs more to repair or replace than a cheaper model does, therefore increasing your insurance rate.

Car insurance rates vary. So try to check different insurance companies to determine which rate is best for you.

What Is Uninsured Motorist Coverage? And Who Need It?

This is an auto insurance coverage that protects you if involved in an auto accident caused by an uninsured driver. This type of insurance covers your bills after being involved in an accident caused by a driver who doesn’t have insurance.

What Does Uninsured Motorist Cover?

If another driver who doesn’t have liability insurance caused your accident, uninsured motorist insurance typically covers costs for you and your passengers. These costs include:

Medical expenses
Funeral expenses
Suffering and pain compensation
Lost wages if you cannot work
Damages to your car and many more.

However, every uninsured motorist’s coverage is different. The best way to know what your uninsured motorist insurance covers is to ask your insurance provider.

What Does It Not Cover?

Uninsured motorists will not cover every expense. It typically does not cover:

Legal fees related to the accident
Damages to items inside your car
Expenses over your policy amount

Therefore, it’s crucial to discuss your coverage in detail with your provider to understand what your uninsured motorist’s coverage protects.

Who Needs Uninsured Motorist Coverage?

If you drive, then you need uninsured motorist coverage. This coverage pays if you’re hit in an accident. You never can tell; the person who hit you may not have enough insurance to pay for damage to your car or your injuries.

Frequently Asked Questions About Life Insurance For Senior

Buying life insurance for seniors can be challenging because it requires making important decisions that affect your loved ones. There are a few facts you need to know about life insurance before making your decision. Here are some FAQs to consider when searching out the right life insurance policy.

Why do I need life insurance?

We all want to take care of our loved ones, and leaving them behind without financial protection can be worrisome. Life insurance offers secure ways to provide financial support to your dependents when you pass away. This financial support is typically a tax-free sum and can be used to replace your income to manage your dependent’s day-to-day expenses.

When does the life insurance policy kick in?

Different insurers have different guidelines that determine when your policy will go into effect. Some life insurance policies are effective immediately, while some policies won’t pay the death benefit if you die in the first 12 to 24 months. Ask your insurance company about this before getting a policy.

What if I have an underlying medical condition?

As an elderly, you can still qualify for a life insurance policy even if you have a medical condition. The insurer will look at your circumstances, review your overall health, and tell you whether you qualify. In some situations, you may be given a modified policy with higher premiums.

What will happen if I pass away after my policy ends?

A life insurance policy for seniors is only good when your coverage is active. So, if you purchase a 5-year policy and die a few weeks after the policy ends, your beneficiaries won’t get any benefit.

Is life insurance for seniors worth it?

Life insurance for seniors is worth it if you have a family and want to support their lifestyle after death. However, life insurance may not be worth it if you don’t have a family or beneficiaries.

Before buying a life insurance policy for seniors, ensure that you have received satisfactory answers to all of your questions.

The Consequence of Driving Without Insurance

Driving without auto insurance coverage is illegal, and this could result in legal or financial consequences. The state has the highest number of uninsured drivers in the country, at almost 26 percent, which is why cracking down on uninsured drivers is a priority. Whether you are a newly licensed driver, a new resident, or have been driving in the state for some time, you are legally required to carry minimum amounts of auto insurance.

Insurance Requirements

The U.S state law requires you to have a minimum amount of liability insurance plan in order to drive on public roads. The minimum coverage requirements are as follows:

$25,000 for property damage
$25,000 for the injury per person
$50,000 for the total injury or death

Penalties for Driving Without Insurance

If you get caught driving without insurance in the U.S, you may get a ticket, but the penalties can extend into fines or even jail time. You can be fined up to $250 and other court fees for driving without insurance. Plus, you can be sentenced to 30 days in jail, though it is not likely if you are a first-time offender. In some cases, your driver’s license may also be suspended, meaning you wouldn’t be able to legally drive your car in the U.S. Your car’s registration may also be suspended, and your car could be impounded.

Common Insurance Mistakes to Avoid

Insurance is one of those essential things you need to have, yet most of us spend little time thinking about it. While it is important to make sure you are covered, having the wrong type of insurance or inadequate coverage is as detrimental as not having any insurance at all. Here are some of the common insurance mistakes to watch out for when shopping for an insurance plan.

Insuring at the Bare Minimum

While it is good to be thrifty, you should avoid the temptation to go for the bare minimum when shopping for an insurance plan just because you want to save money. The incremental cost between paying the bare minimum and paying for the right amount of insurance coverage is usually minimal and definitely not worth the risk.

Getting the Wrong Insurance

Does your homeowner insurance policy cover flood damage? Do you know that most collision coverage doesn’t cover the stolen car? Insurance can be complicated, but it is wise to verify your insurance policy to make sure you have the right coverage.

Staying Too Loyal to Your Insurer

While your insurance company may have the best rate for you during your initial enrollment, they may no longer offer the best deal. Whenever you experience any major change or after the expiration of your insurance plan, you should get several quotes from different insurance companies to get the best deals. You may also want to shop for a good rate whenever you are hit with a rate hike.

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