Tuesday, November 10th, 2009 at
8:21 pm
Jeff Walker: Thanks for the information on No fault auto insurance coverage. If this is bringing in so much auto insurance claims than why do you need “No fault coverage” under auto insurance policy? Would teenagers be able to get cheap automobile insurance coverage if the no fualt coverage was not given by insurance companies?
Response: Jeff, I understand what you are trying to say, however the purpose of auto insurance is not just to pay low premium but also be able to get a claim payment in the event of an auto accident. At the same time it would be wrong to spend a lot of money on legal matters and also auto insurance fraud. Let me first give you the benefits of “No fault” coverage and also the drawbacks of the No fault auto insurance.
Benefits of a no-fault system
No-fault system offers many benefits, including the following:
Quicker payment of claims by eliminating costly and time-consuming litigation over liability.
No splitting of fees with lawyers.
Lower insurance rates because expensive non-economic damage awards and legal fees required to defend liability claims are eliminated–legal fees currently account for 12% of premium costs.
Reduction in the number of lawsuits.
No subsidizing uninsured motorists; your insurer covers the cost of your medical bills.
Lower rates mean that auto insurance is accessible to people of lesser means.
Drawbacks of a no-fault system
No-fault insurance argue that the benefits are purely theoretical and that past performance has proved that no-fault is ineffective. Drawbacks include the following:
No compensation for pain and suffering, paralysis, or other non-economic damages; arbitrary limits are imposed.
Under pure no-fault and choice systems, bad drivers are protected because they cannot be sued for the damages they cause. Thus, there’s no incentive to be a good driver.
Rates are actually higher under no-fault. Regardless of theory, insurance premiums in no-fault states are on average 25% higher than in traditional liability states.
There is no reduction in litigation costs under a no-fault system. The time and effort insurers once spent defending litigation claims is now spent defending lawsuits brought by their own insureds for failure to pay no-fault benefits. In modified no-fault states, tremendous time and energy is spent litigating over whether or not the tort threshold requirement has been met.
Even your economic damages are limited by the terms of the policy. In traditional tort states, you are fully compensated for your loss by suing the driver responsible for your injuries. No-fault states have limits on liability, even for your basic economic damages. These limits result in people being forced to pay for any unpaid medical bills without recourse against the driver who caused the injuries.
Its really diffcult to decide what really works and so you will appreciate what the insurance companies also have to go through. However, keen competition in the market makes it possible for even young drivers to get cheap auto insurance quote.
Sunday, October 18th, 2009 at
9:09 pm
Keith Baxter: How can you get cheap auto insurance teen discounts? What are the auto discounts that a teenager can obtain for auto insurance?
Response: There are a number of discounts the teenager can obtain for a cheap auto insurnace quote and it would vary from company to company or change from time to time and hence the need to compare auto insurance quote. Here are some of the discounts :
Graduated driving lessons discount: Defensive driving is one of the ways of obtaining auto insurance discount for young drivers. The discount normally applies for 3 years. For example, if your auto insurance premium is $150 per month, the premium is $5,400 for 3 years. The policy holder will not get 10% discount on the comprehensive coverage, but all other auto insurance coverages. One can easily save $450-$550/- for their personal expenses in a period of 3 years.
Good student discounts: It has been statistically proved that young drivers who are good students are more reliable and mature and this enables them to make better driving decisions. Based on these findings, the young driver is given a discount of 5-10% for obtaining a good grade, normally an average over B in high school or college. If the young driver has to pay his or her own automobile insurance, this will be another motivator for him or her to make good grades
Auto Safety Features: Most insurers consider that owners with cars containing safety features may have fewer accidents and reduced injuries. Safety features like antilock brakes, air bags and other additional features in a car are encouraged especially for young drivers. The insurer will give you higher auto insurance discount for these safety features.
Claims free discount: Once you have had no claims on your auto insurance policy for 3 years, you will get low auto insurance rates since you will get a claims free discount.
Online Insurance discounts: Most insurance companies give a higher discount when insurance is bought online since they save operating costs.
Membership discount: Being a member of an association, a school or club would get you a car insurance discount.
Multiple cars, multiple coverage discounts can be obtained if you insure multiple cars or multiple coverages like auto and home with one insurance company.
I am sure these tis would really help you get auto discounts. Check out the quotes here and am sure you will not be at all disppointed.
