Posts Tagged ‘auto insurance’

Vehicle Coverage For The Typical American Family

Thursday, October 8th, 2015

Car insurance coverageThe typical American family has a few specific insurance policies for protection against unforeseen mishaps. In addition to health and life insurance policies, families are well served by carrying adequate auto insurance. An accident or unexpected source of damage can happen to any driver in the family. Auto damage is generally addressed through liability, collision and comprehensive coverage.

Liability Coverage
Car liability coverage pays for damage to the other vehicle in an accident. Lawsuits against the responsible party are also covered by liability insurance. Liability coverage is mandatory in most states, but the minimum amount of coverage required will vary.

Collision Coverage
The collision portion of an insurance policy pays for damage to the policy holder’s vehicle in the event of an accident or a collision with another object. The coverage may be used no matter who is determined to be at fault for an accident. Mailboxes, posts, trees and bridges are some objects with which vehicles commonly collide.

Comprehensive Coverage
Comprehensive insurance is what covers damage from sources other than a collision. Theft, vandalism, animal collisions, and acts of nature that cause damage are covered under the comprehensive portion of a policy. Windshield cracks from other vehicles kicking rocks from the roadway, for example, would also be covered through a comprehensive policy.

Claim Considerations
When damage is relatively minimal, such as what is common with the need to repair auto glass, the typical American family will look at all cost considerations before filing a claim. They will assess the amount of the deductible, the amount the insurance would cover, and the potential for a hike in premiums. Depending on the circumstances, some policy holders might decide to pay for these types of repairs out of pocket. A review of the family’s auto policy can help to determine what is covered and whether to file a claim.

Antitrust Cases Dismissed By American District Court Judge

Wednesday, September 9th, 2015

auto insurance repair trustIn Florida, an American district court judge has approved the findings of a magistrate judge, which ruled that numerous antitrust complaints – made by windshield repair firms throughout the country against several insurance providers — should be thrown out. Nonetheless, the judge allowed leeway for lawyers to submit modified complaints. Auto glass repair stores from twelve federal district courts claimed that multiple insurance firms had fixed prices. These cases were dealt with together by the district court judge in Florida. The judge remarked that the complaint made against State Farm by Louisiana was awaiting approval to be contested in Louisiana state.

Twenty-First Century Centennial Insurance Company Versus A&E Auto Body Incorporated seems to have ignited the court proceedings. Here, a few Florida windshield repair stores filed a case against State Farm (along with many other insurance firms) claiming that the insurers illegally depressed rates, via their direct repair packages. Allegedly, if the stores failed to play ball, customers were sent elsewhere.

In the context of this court battle, other similar complaints were made in Michigan, Arizona, California, Pennsylvania, Alabama, New Jersey, Illinois, Washington, Oregon and other states. In December 2014, the American JPML (Judicial Multidistrict Litigation Panel) sent these complaints to the American District Court in Florida. Due to the sheer number of cases and states involved, the presiding American district court judge requested assistance from the American magistrate judge, to facilitate case research and provide advice. Defendants and plaintiffs had the chance to submit rebuttal statements.

During their statements, the plaintiffs made claims about the behavior of defendants collectively. Initially, the legitimacy of collective pleading was called into question, but eventually it was given the OK. Nonetheless, Judge Smith concluded that plaintiffs should, at least, provide enough evidence related to each specific defendant – or enough facts pertaining to each corporate group of defendants – to link the defendants to the alleged illegality.

After the antitrust complaints from the fourteen cases were reviewed, the magistrate judge said that the group boycott and price fixing allegations were no different to those that were made in Florida. Therefore, the judge ruled that the complaints should be thrown out on the same basis that the Florida complaints were rejected. Furthermore, the magistrate judge ruled that the antitrust complaints made in New Jersey, Michigan, Virginia and Washington should be thrown out, due to insufficient evidence of a contract between the defendants. This ruling was approved by the American district court judge.

Virginia is first state to adopt pay by the mile auto insurance

Sunday, June 28th, 2015

Car insurance Phoenix ArizonaVirginia is the first state in the United States to introduce pay by the mile car insurance.  While this may seem strange considering Virginia is a state with a large majority of long-distance drivers, this insurance is not for every person.  This new auto insurance, called Metromile, is for the 60 to 65 percent of drivers who drive under the suggested mileage each year.

This new car insurance is lower cost to the insurance company as well as to the drivers who are eligible.  From the perspective of the insurance company, low mileage drivers are less risky because they are at less risk to come across potential hazards, auto glass damages, or accidents simply because of the amount of miles they drive.  Metromile argues that drivers who drive longer distances are more likely to experience risks than do drivers who drive shorter distances.

This system operates using a device that plugs into the car’s computer system and monitors how many miles are driven.  The individual would be charged a flat monthly rate and the mileage charges would then be added on top of that rate.  It has been found that the average driver saves approximately five hundred dollars after switching to this new type of car insurance.  This is because the driver is charged only for the amount of miles he or she puts on the vehicle.  The only downside to this new auto insurance is that the company would know exactly where and when their drivers go to specific locations.  For individuals who are aware of their privacy rights, this could be an issue.