PIP and No-Fault Auto Insurance - Is "Reform" the Wave of the Future?

Today, there are now numerous states that are trying to get rid of the PIP and the No-Fault form of vehicle insurance. This is to give way to the new set of laws that are based from the misdemeanour of most drivers.

It was in 1930’s when the PIP and No-Fault insurance started. This used to be another option for the usually expensive and slow process of getting insurance claims. The intention of having PIP and No-Fault insurance is to fasten the process by changing the resolution starting from the courts until to the insurance companies. At first, the PIP and No-Fault vehicle insurance decreased the premiums and the rates for all the car owners.

During the middle years of the 70’s era, there were already more than 20 states that incorporated the laws of the no-fault vehicle insurance. Eventually, the rates of the insurance integrating the No-Fault policies increased. By the early years of the 80’s, these states that pursued the no-fault insurance started to repeal the law one by one. As of today there are only nine states that have the no-fault laws. This includes the states of Utah, Florida, North Dakota, Hawaii, New York, Kansas, Minnesota, Massachusetts, and Missouri. On the other hand, there are eleven states that have the combination of tort insurance system and the no-fault insurance laws at the same time. This includes Virginia, Arkansas, Texas, Delaware, South Dakota, Kentucky, South Carolina, Maryland, and New Jersey. Moreover the District of Columbia also has a combination of the two insurances as well.

Many states are now choosing tort-based car insurance over the PIP/No-Fault insurance. Is this something that the consumers should be concerned about?

This is actually a good news for all the car owners. The tort-based insurance will give you more options especially for the medical expenses. Moreover, the said system will also let the consumers save a lot of money as well. According to the article published at the Denver Post, policy holders can get as much as 30 percent of savings when they choose the tort-based insurance. Clients will get to choose which coverage they want to include in their policy or which should be omitted from the list.

In most cases, the Personal Injury Protection or the PIP, is still available for consumers just in case they would like to include it in their expenses. The PIP can be acquired easily even if you already have a tort-based insurance that does not include this coverage. It would help you cover most of the medical expenses that you have to pay in case of accident. Unfortunately, the coverage of the PIP is limited to $50,000 only. It would pay for the medical expenses caused by an accident while you or any of your family members did while driving the insured car.

Not all drivers have the sufficient insurance to cover for the expenses of damaged properties and bodily injuries. Some are too irresponsible to get an insurance while others are simply underinsured. Therefore, you must also know more details on how to handle drivers like this.

So, what is next?

This is a good time to look at your health insurance to make sure you will have adequate coverage if you drop your PIP/No-Fault coverage. Don't wait until you're in an unpleasant situation to find out if you need more insurance. Fill out our form on the top and get up to five free quotes on auto or health insurance. Be prepared!

Play it Safe, Save on Auto Insurance

If you want to get a very affordable auto insurance, you just have to get a safe vehicle and to drive safely at the same time. Some online insurance quotes service will definitely help you in getting this cheap auto insurance. You will easily get in touch with the local insurance agents and have your driving record examined in a jiffy. What’s best about these car insurance companies offering their services is that you will still get the best car insurance deal without the price increase.

MORE THAN JUST SAVING MONEY

Everybody who has a car considers safety as their first priority. However, many of the car owners are neglecting the fact that road safety does not only rely on the skills of the driver but also on the safety features of the vehicle as well. If you would think of these safety features of the car along with the other issues including the efficiency in the gas consumption, leg room, engine power, and so much more, you would surely save a lot of your money in the long run.

If you are looking for a vehicle that has safety features or if you are shopping for additional safety features in your vehicle, there are some things that you must consider. First of all, think about the functionality of the safety device. It must be easy to use without compromising the quality and the safety of everyone in the vehicle. The next thing that you must put into consideration is the price. There are tons of safety car features that are inexpensive.

By adding these, you would get big discounts on your auto insurance rates. It would also help if you would ask your insurance agent about the car safety devices that would give you greater discounts for a lower insurance premium.

IMPORTANCE OF THE SEAT BELTS

You would experience a great impact while the vehicle is in motion and the driver stepped on the break suddenly. This may even cause injuries for some passengers as well. Therefore, you must always take advantage of the seat belts so you can be protected from the injuries caused by sudden stopping of the vehicle. The seat belts would prevent you from getting injuries particularly in your pelvic area as well as your chest. When buying a new car, you must carefully consider the seat belt features of the vehicle. if possible, choose the model that has seat belts for each passenger.

AIR BAGS

Other than the seat belts, you must also consider the air bags at the same time. In case of accident, the air bag will be the cushion of the driver and the front passenger so that their heads would not hit any hard part of the vehicle or get fatal injuries from the glass of the car. It is less likely that fatality would occur if there are air bags present in the vehicle. This would also result to a lower insurance rate as well since there is a lesser chance of getting seriously injured due to this safety feature in your vehicle.

SUV Insurance

The SUV or sports utility vehicle is one of the most sought after vehicles today. This is actually considered as a powerful vehicle which triggers the daredevil in some of the drivers today. That is why most car insurance companies are giving higher car insurance rates or auto insurance cost for this type of vehicle compared to the typical cars that you see on the road.

But even though other people are driving SUV’s like there’s no tomorrow, this vehicle is actually designed for slow speed especially when driven on rough terrains. Aside from the insurance premium, the expenses for repairing an SUV, and the fuel consumption are just some of the disadvantages of SUV’s.

What really makes SUV insurance expensive? There are numerous reasons given by the ABC News and Consumer Reports why the premiums of SUV insurance are usually high.

1. Because SUVs are more prone to accidents compared to its smaller vehicle counterparts, car insurance companies think that increasing the insurance rate would help them protect their business and the vehicle better.
2. Once an SUV got involve d in an accident, there will be more damages to their passengers, pedestrians, and other vehicles.
3. The amount of repairing SUV is more expensive since the standard is not bound to the same standards of the smaller cars.
4. An SUV is more likely to tip over and roll than small cars.
5. The SUV is at risk of theft since it is very popular, stylish, and a trendy vehicle.

However, you still have some chances of getting discounts in your insurance rate if you own a SUV. You can use the safety equipments that are installed in your SUV, your driving history, credit record, the place where you live, and the model that you drive so you can get a lower SUV insurance rate.

Top 10 tips on how you could reduce your insurance premiums

Surely, you want to lower your insurance premium by as much as 50 percent or even more if possible. Why not try some of these strategies so you can control the insurance premium that the company will give you.

1. Try looking for the auto insurance quotes of the various insurance companies. You will be surprised to know how these rates vary. More often than not, getting these quotes is free of charge and can be asked from an insurance agent or you can get it online.
2. Ask your agent about the insurance rate of a particular SUV model before your purchase the vehicle.
3. Maintain a clean driving record.
4. Maintain a high credit score.
5. Higher deductibles can actually get you lower insurance premiums.
6. Do not forget to have safety equipments installed in your SUV.
7. Forget about the unnecessary coverage if you own an old SUV model.
8. The longer you stay with the same insurance company, the bigger chance you get discounts on your SUV insurance premium.
9. Purchase the insurance for your SUV from the same company where you bought the insurance for your home or other types of insurance as well.
10. Take advantage of the group insurance along with your fellow SUV enthusiasts.

As you can see, driving your SUV and keeping insurance rates low are not mutually exclusive.

So take advantage of cost-saving strategies, apply for free quotes from our vast agent network, and get a custom-tailored policy made especially for you.

"Rugged" SUVs Sustain Costly Damage in Minor Accidents

There are actually different scenarios which has similarities other than the expensive cost of repairing a vehicle. Note that the vehicles in these examples are SUVs.  

• Backing in a parking area and accidentally hitting the front of the car parking behind it.
• Accidentally scratched a part of the vehicle’s rear in a low pole at a gasoline station.
• Slowly reducing your speed before reaching a stoplight when another vehicle hit you from behind.

All of these situations are on a low speed and had bumper damages on it.

 

When it comes to SUVs, it would cost you as much as $3,000 just to repair for the minor bends in the bumper or in any parts of the vehicle as well.

 

According to the advertisements of the different SUV manufacturers, this type of vehicle is the tough and can tolerate even the roughest road condition. However, these are just purely advertisements. There are just a few SUV models that have bumpers that can withstand minor collisions and bumps. In a study conducted in 2003, there are 8 out of 9 midsized SUVs that have poor bumper performance and low ratings when tested for a crash test (integrating only 5 mph for the speed). The said study was performed by the Insurance Institute for Highway Safety.

 

It was only the 2003 Honda Pilot that was proven to be equipped with high performance bumpers that can even withstand both minor and major damages. But there are also some models that got an average rating such as the 2004 Lexus RX 330, 2004 Mitsubishi Endeavor, and the 2003 Nissan Murano. On the other hand, the SUVs that got the poor rating includes the 2003 Kia Sorento, 2004 Cadillac SRX, 2003 Toyota 4Runner, 2003 Infiniti FX35, and the 2004 Chrysler Pacifica.

 

The study that was conducted by the institute have tested not only the front but the back as well. These parts have been crashed in flat barriers, poles, and angle barriers to see how it would damage the bumpers.

 

Most of the vehicles that were mentioned above got big damages although the collision is only minor. For every test, the repair cost ranges from $400 up to $1,600 depending on the SUV model. The SUV models that got poor rates had the biggest repair cost when the rears were tested on the poles. The Kia Sorento, Chrysler Pacifica, and the Cadillac SRX were not strong enough to protect the sheet metal and the other parts of the vehicle during the said tests. As a matter of fact, you would have to spend as much as $2,800 for repairing the SRX and the Pacifica. On the other hand, the Kia Sorento would cost you $2,200 just for the repair expenses.

 

According to the Chief Operating Officer of the Insurance Institute for Highway Safety, it is actually not hard to build a bumper system that is decent enough to face minor collisions. Mr. Adrian Lund also said that it is not that expensive as well. But it would definitely cost a lot if you would not do anything about your SUV’s poor bumper performance.

 

Many other vehicles have bumpers providing inadequate protection. Of course, when auto insurers set insurance premiums, they must take into consideration the high risk of expensive bodywork for minor accidents. These costs get passed along to consumers in their auto insurance premiums.