Insurance-- some information

Insurance

Washington State requires proof that an owner is capable of paying in the event of injury to persons or property damage in a collision the proprietor of 25 or more vehicles shall be self insured

Most drivers carry auto insurance. They pay premium, or fee, to acquire protection from financial losses which may arise from a collision or mishap in which they are involved. The insurance company issues a policy, or written contract, and a proof or of insurance to the individual indicating how much and under what circumstances it will pay.

WHERE TO ACQUIRE INSURANCE

There are several sources

·         Directly from an insurance company

·         Agents who represent one or more companies

·         Brokers who do business with many companies

·         Auto clubs which may also issue insurance

·         Employers, unions or fraternal organizations offering group plans

Whatever your choice, deal with someone who takes the time to answer your questions, who is willing to point out alternatives in coverage and explain the differences between them and who has a good track record in the settlement  of claims. Again you must shop around, ask friends and relatives, and check with consumer groups.

KINDS OF INSURANCE COVERAGE

Vehicle insurance is available in many forms to cover the possible situations that may arise.

LIABILITY INSURANCE protects you against any claims that may arise when you are held responsible for a mishap or collision. It comes in two forms bodily injury liability (injuries to other people whether pedestrians or passengers - minimum  $25,000 one person, $50,000 for two or more persons) and property damage liability (repairing or replacing other people’s property – minimum $10,000) This will also pay legal fees, court costs and lost wages up to the maximum of your insurance coverage. Minimum requirements are insufficient as you will be held personally responsible for claims that exceed your coverage.

COLLISION INSURANCE pays for repair or replacement of your vehicle, regardless of whether you are at fault, involved in a collision with an uninsured driver or the victim of a hit and run. Because of the increasing cost of this coverage, most insurance companies offer a deductible policy- Meaning the person who purchased the coverage pays a $50-$500 portion of the bill first,  the higher the deductible the lower the cost of the insurance premium.

COMPREHENSIVE INSURANCE protects you from losses due to vandalism, theft, fire, floods, or windstorms. Once again, a deductible affects the cost of the coverage

MEDICAL PAYMENT INSURANCE  is a specific policy covering medical, hospital or funeral costs. It covers you, your passengers and your family in case of collisions causing injury or death.

NO FAULT INSURANCE has been adopted in many states. In this plan, you and your passengers receive payment for your adjusted claims directly from your own company regardless of who is responsible. The advantages are faster settlement of claims and lower cost of insurance. This does not however, prevent injured parties from suing for damages

TOWING INSURANCE covers the cost of on-road repairs and the cost of having your vehicle towed

Insurance is not a simple matter. Since each person’s situation is unique, this means that you must arrange your coverage to meet your individual needs.

THE COST OF INSURANCE

Insurance companies use statistics ro determine the cost of their premiums. The factors used in determining the cost:

·         Your age- rates reduce as you get older

·         Driving record- traffic violations, collisions, previous claims, etc. will increase your rate

·         Vehicle usage- If you drive to work, car pool, or use your vehicle for pleasure only; higher mileage means higher rates

·         Marital status-married persons pay lower premiums

·         Gender- women drive less often and have fewer collisions so they typically pay a lower rate

·         Your vehicle-the more expensive the vehicle; the higher the premium will be. Sport models also cost more

·         Your residence-people residing is high density population areas pay higher rates

·         Special discounts-some companies offer discounts for air-bags, brake systems, alarm systems, having completed a TSE program, or good student discounts

*ONLY licensed drivers are allowed to be added to an insurance plan-- while students are on their permit there is no policy that can be written nor can they be rated on a policy.