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Each infraction such as moving violations, parking tickets, at-fault accidents, or driving under the influence, is assigned a certain point value. When you are found guilty of one of these infractions, the appropriate number of points is added to your driving record. The more points you have, the worse your record. Each insurance company has its own method of evaluating applicants, so the points on your driving record may or may not have a direct impact on the rates you pay for auto insurance. |
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When your car is totaled, the insurance company has an obligation to "make you whole," as that is defined in the policy.
Most policies value your vehicle using Actual Cash Value. "Actual Cash Value" means replacement value less depreciation.
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An SR-22 is a document required as proof of financial responsibility by the court or under state law for persons convicted of certain traffic violations.
Definition of an SR-22 from the Car Insurance Learning Center: SR-22 is a form which must be filed by the insurance company stating that auto liability insurance is in effect for a particular individual. Required when insurance is provided to an individual who was in an accident or was convicted of a traffic offense and was unable to show financial responsibility. Each state has different variations of this form and requirements
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Sometimes there is a requirement by a state regulatory entity (usually the state Motor Vehicle Department) for an insurance company to certify that a driver has the ability to pay future claims up to the state required limit. This is the reason why you would have to have an SR-22. It shows that you are financial responsible and it is done in the form of a certification called an SR-22. |
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GAP insurance can provide valuable protection during the early years of your car's life if you have a loan or a lease.
If a loss occurs, GAP insurance will pay the difference between the actual cash value of the vehicle and the current outstanding balance on your loan or lease. Gap Insurance protects your vehicle lease or loan. Sometimes it will also pay your regular insurance deductible.
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The penalty for driving without insurance varies from state to state. In some states, your vehicle tag can be seized and your car impounded. In addition, some states impose heavy fines for those who drive without auto insurance. Limited sates fine a fee of $150 to $500 for driving without insurance.
The consequences can be far more serious if you are involved in an accident and do not have insurance. You may have to comply with the financial responsibility laws (SR22, SR22s, SR16) including having to pay for any injuries or damages out of your own pocket.
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Car insurance isn't very exciting. Depending on which state you live in, it could be a smaller or larger piece of your budget than your neighbors across state lines.
How much insurance should you buy? Any insurance agent worthy of their salt will tell you that you should buy as much as you can afford. While this is a good rule of thumb, it's about as useful as a stock broker's tip to buy low and sell high. It might be sound logic but it doesn't get you any closer to an educated decision. There are a few filters that need consideration in order to make that educated decision. First, what is the state required minimum coverage where you live? Second, what does the minimum cover? Third, what other coverage is available and can you afford it? And fourthly, what are you protecting?
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Several national rating institutions rate insurance companies. Do coverages, rates, and service vary from company to company? Why can you pay less with one company than another can for the same coverages? Choosing the best insurance company for you is a crucial financial decision. Does your insurance company have the financial strength to safeguard you and your family? If the company cannot pay future claims or benefits, other issues become far less relevant. Financial strength ratings are an analysis of a wide variety of risks that could affect an insurance company's long-term viability. Insurance companies have failed or ceased to operate due to inadequate financial strength, competitive forces, or changing dynamics in the marketplace. |
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Do you consider the cost of insurance before you buy your dream car? You should. The Highway Loss Data Institute analyzes the cost to insurance companies from theft, collision, and injury claims as they relate to cars. They look at the color of the cars, how many doors they have, and even break them down type.
The Highway Loss Data Institute is a nonprofit public service organization. It is closely associated with and funded through the Insurance Institute for Highway Safety, which is wholly supported by auto insurers. HLDI gathers, processes, and publishes data on the ways losses vary among different kinds of vehicles.
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Europe has significant safety features for automobiles that are either standard or optional equipment for their vehicles. These features have not been introduced here in the US. Why?
Could a lack of tort reform be the culprit? It boggles the mind. This was a topic of discussion at an April 21, 2004, meeting of Advocates for Auto and Highway Safety.
What is tort reform and why does it affect car insurance? Tort reform is used by its advocates to describe a change in the United States civil justice system that will limit tort litigation and damages. By doing so, it will reduce litigation's adverse effects on the economy.
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