Does car insurance cover tree damage
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Does car insurance cover tree damage?

Branches or trees that have fallen can cause severe damage to your vehicle. If you have comprehensive coverage on your auto insurance policy, your car insurance may help cover tree damage. This coverage helps pay to repair or replace your vehicle if it is damaged or destroyed by falling objects, such as a tree.

How does all-inclusive protect against tree damage?

Comprehensive coverage assists in covering damage to your vehicle that is not the result of an accident. Typically, it assists in covering losses such as theft, hail damage, animal damage, and tree damage.

Unless you are leasing or financing your vehicle, comprehensive is an optional coverage on your auto insurance policy. In such a scenario, your lender may require you to purchase full coverage.

If you file a claim for tree damage under your comprehensive coverage, you should be aware of your deductible and coverage limit, as they will affect your out-of-pocket expenses.

The deductible is the portion of a covered claim that you must pay. For example, let’s say you chose a $500 deductible when you purchased comprehensive coverage. If a fallen tree damages your vehicle to the tune of $3,000, you would pay your $500 deductible and your insurer would pay the remaining $2,500.

Your comprehensive coverage limit applies if a tree completely destroys your vehicle. If your vehicle is declared a total loss, your insurer will assist you in purchasing a replacement vehicle, up to the coverage limit. Typically, the limit for comprehensive coverage is the depreciated value (or “actual cash value”) of your vehicle. Suppose, for example, that the actual cash value of your totaled vehicle is $20,000. Your deductible for all coverages is $500. Your insurer would send you a $19,500 check.

Other insurance coverage for claims involving tree damage

Consider adding additional coverage to your auto insurance policy in case you need to file a claim for tree damage. Consider the subsequent:

Optional coverage that helps pay for a rental car (up to the policy limits) while your vehicle is being repaired for a covered loss.

This coverage helps you replace your totaled vehicle with a brand-new vehicle of the same (or similar) make and model. This coverage is important because a check from comprehensive coverage alone may not be enough to replace a brand-new vehicle of the same make and model (remember, comprehensive coverage pays only up to the depreciated value of a vehicle). You may only be eligible for new car replacement coverage if you are the first owner of a vehicle.

You may also wonder whether your homeowner’s insurance covers trees that have fallen. If you own both the tree and the vehicle, your homeowner’s insurance policy will likely not cover the damage to your vehicle. Even if the tree that fell on your car belonged to a neighbor, you would likely still rely on your comprehensive coverage. However, if it can be proven that your neighbor’s negligence caused the tree to fall, the neighbor’s homeowner’s insurance may cover the damages.

If a tree falls on your vehicle, costly repairs (or replacement) may be necessary. Consider adding comprehensive coverage to your auto insurance policy to guard against this type of financial burden. Have questions? Consult your insurance company.

Auto Insurance Quotes

From offering liability protection to you and your family to helping you get reimbursed for personal property damage, auto insurance provides many types of coverage. Learn more about Auto Insurance Coverage or get a free auto insurance quote from Klimes Insurance today.

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Extra insurance for a new car: 3 key coverages
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Extra insurance for a new car: 3 key coverages

There is nothing quite like a brand-new automobile, from its smell to its performance. What would you do if you had to replace your brand-new automobile? It’s difficult to imagine your brand-new vehicle being scratched, let alone totaled.

In addition to the state-required minimum auto insurance coverage for a new vehicle, you may be able to purchase three additional coverages that provide financial protection in the event that your vehicle is irreparably damaged. These policies include:

  • Automobile replacement coverage
  • Coverage for repair coverage and
  • Loan or lease shortfall coverage

Some insurers bundle these coverages together. When you should consider this type of package and what each coverage protects, continue reading.

How do insurance companies define “new car”?

The definition of a “new” vehicle differs between insurers. Before selling insurance policies designed for a “new” car, insurance companies may require one or more of the following:

  • The automobile model cannot be older than two or three years (for example, a “new” car insured in 2022 cannot have been manufactured before 2019)
  • The policyholder must be the vehicle’s original owner.
  • You should also be aware that typically, new car coverage expires when the vehicle is no longer eligible. Additionally, the coverage typically applies only to the new vehicle for which it was purchased, and not to all vehicles on the policy.

Isn’t standard auto insurance sufficient?

Certain coverages, such as collision and comprehensive, may help pay for repairs, minus the deductible and up to the policy’s limits. Nevertheless, if the vehicle is deemed a total loss, your insurance company will likely pay only its current market value (called the “actual cash value”).

This can be problematic for new car owners. According to the Insurance Information Institute, new vehicles can lose up to 20 percent of their value in the first year, and standard auto insurance policies typically cover the actual cash value, which is typically less than the purchase price.

This means that if your brand-new vehicle is destroyed in a covered loss, the insurance reimbursement check may not be sufficient to purchase another brand-new vehicle. If you also have an auto loan, you would be responsible for paying off the remaining balance regardless of whether or not you can use the vehicle.

Important coverages for a new automobile.

The following coverages may protect you financially and get you back on the road if your new vehicle is totaled or requires extensive repairs.

Coverage for the replacement of a brand-new vehicle.

This coverage may help pay to replace a totaled new vehicle. With this coverage, your policy may allow you to replace a totaled vehicle with a brand-new vehicle of the same make, model, and equipment, or it may specify whether a comparable model or a certain dollar amount is available.

Coverage for the provision of repairs.

Some policies may also cover the cost of repairs in the event that your new vehicle sustains a partial loss, regardless of its actual cash value. Repair provision coverage may help pay for repairs to a damaged vehicle based on its replacement cost, without depreciation taken into account. However, keep in mind that coverage limits still apply.

Loan or lease default protection.

Gap insurance may help pay the difference between the amount owed on a car loan or lease and the car’s actual cash value in the event of a total loss. Even if your vehicle is no longer operable, you are still liable for any outstanding loan or lease payments. Therefore, if the insurance company’s reimbursement check is insufficient to cover what you owe, gap coverage may help pay off the remaining balance on a loan or lease, so you are not left paying for a junked vehicle.

Driving a brand-new car can be a lot of fun, but replacing one may come with some unexpected costs, given that the average price of a new vehicle exceeds $36,000. Consider new car replacement coverage, repair provision coverage, and gap coverage, or a package that includes these coverages, if you have a new car.

Auto Insurance Quotes

From offering liability protection to you and your family to helping you get reimbursed for personal property damage, auto insurance provides many types of coverage. Learn more about Auto Insurance Coverage or get a free auto insurance quote from Klimes Insurance today.

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Extra insurance for a new car: 3 key coverages
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Insurance for leased vs. financed cars

When deciding whether to buy or lease your next vehicle, it is essential to understand which insurance coverages may be required. Some coverages may be mandated by law or your lender, whereas others may be optional for a financed or leased automobile.

  • Insurance for a leased vehicle
  • According to the Insurance Information Institute, even though you do not “own” a leased vehicle, you are still required to carry your own insurance on it (III). Consider the following coverages for a leased vehicle.
  • Coverages for auto insurance mandated by law

Liability protection:

The majority of states mandate that drivers carry a minimum amount of liability insurance. If you cause a car accident that injures or destroys someone else’s property, liability coverage helps pay for their expenses.

Coverage for uninsured and underinsured motorists:

Depending on your location, you may be required by law to carry this coverage on your auto insurance policy. Uninsured motorist coverage may help pay for your medical expenses if you are struck by an uninsured driver. Underinsured motorist coverage functions similarly if you’re hit by an underinsured driver whose liability coverage limits are insufficient to pay for your medical expenses. In some states, personal injury protection may be required in lieu of or in addition to uninsured and underinsured motorist coverage.

Insurance protections required by your landlord

The leasing company is the owner of your leased vehicle. According to the III, to protect its financial interest in the vehicle, the finance company will likely require collision and comprehensive coverage as part of your auto policy.

Collision protection:

If you hit another vehicle or object, regardless of who was at fault, your insurance will help pay for the damages.

Comprehensive protection:

Helps pay for repairs if the vehicle is damaged by something other than a collision, such as vandalism, theft, or a falling object.

There may be insurance coverages included in your auto lease.

According to the III, many leasing companies automatically include gap coverage in your lease payments. Gap insurance helps pay off your auto loan if your leased vehicle is totaled and you are “under water” on the loan. The III recommends asking your leasing company if loan or lease gap coverage is included in your contract. If not, you may be able to purchase additional coverage through your auto insurance provider.

Auto insurance for a financed vehicle

When you purchase a vehicle, you must continue to carry liability insurance. Depending on where you reside, you may also need uninsured/underinsured motorist coverage and/or personal injury protection. Additional car insurance considerations depend on whether a car is purchased with a loan, in cash, or even the model year of the vehicle.

How auto loans affect coverage

Your lender may require comprehensive and collision coverage on your auto insurance policy if you obtain a vehicle loan. Once your car is paid off, you may be able to adjust these coverages on your auto insurance policy.

How purchasing a vehicle outright impacts insurance

Comprehensive and collision coverage are typically optional on an auto insurance policy if you purchase a vehicle without an auto loan or pay off your auto loan. A determining factor may be whether you can afford to repair or replace your vehicle out of pocket in the event of an accident.

How purchasing a new vehicle affects insurance

If you are the original owner of a vehicle that is only a few model years old, you may want to consider purchasing additional coverage for a brand-new automobile. For instance, if your brand-new vehicle is totaled, new car replacement coverage may help you purchase a comparable replacement vehicle.

What is the distinction between financing and leasing?

The primary distinction between leasing and financing is who owns the vehicle at the conclusion of the loan term. According to Consumer Reports, when you lease a vehicle, you do not own it and must return it to the titleholder when the lease period ends. During the lease period, you are essentially paying to “borrow” the vehicle, according to Edmunds. You may have the option to buy the vehicle at the conclusion of the lease.

When you finance a vehicle, you own it at the conclusion of the loan period (as long as you made all the required payments). Once you have paid off the vehicle in full, the lienholder’s name will be removed from the title, leaving only yours.

Should one purchase or lease a vehicle?

The advantages of purchasing versus leasing a vehicle depend on a number of variables, including the size of your down payment, the length of your financing agreement, and depreciation. Compare the estimated costs of a car loan versus a car lease using this calculator:

What are the advantages of leasing a vehicle?

According to Edmunds, several potential advantages of leasing a vehicle include:

  • Driving a new vehicle every few years, as lease terms are typically only two years.
  • Lower maintenance expenses, as the majority of leased vehicles are still covered by warranty.
  • Lower initial deposits and monthly payments

What are the advantages of financing an automobile?

  • According to U.S. News & World Report, some of the advantages of financing a vehicle are as follows:
  • The vehicle’s ownership at the conclusion of the loan period (assuming you made all required payments)
  • Most leases limit the number of miles a vehicle’s lessees are permitted to drive (for example, no more than 12,000 miles per year)

Auto Insurance Quotes

From offering liability protection to you and your family to helping you get reimbursed for personal property damage, auto insurance provides many types of coverage. Learn more about Auto Insurance Coverage or get a free auto insurance quote from Klimes Insurance today.

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When Is A Car Considered Totaled?
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When Is A Car Considered Totaled?

In general, a car is considered totaled when the cost of repair exceeds the value of the vehicle. Certain states have enacted legislation defining a totaled vehicle according to specific thresholds. In Alabama, for example, a vehicle may be declared totaled if the damage exceeds 75% of its value. If a vehicle is worth $5,000 and the repair estimate is $4,000, it is likely to be considered totaled.

In other instances, the insurer determines whether or not a vehicle is a total loss.

Comprehensive and collision coverages assist in the cost of replacing a totaled vehicle. If you’re leasing or financing your vehicle, these two distinct coverages are typically required on your car insurance policy. They are not required if your car is paid off. However, if your vehicle is totaled and you lack comprehensive or collision coverage, you may have to pay for a replacement vehicle out of pocket.

WHAT IF MY CAR IS TOTALLY DESTROYED IN AN ACCIDENT?

If you’re involved in a car accident, there are a few basic steps you should take both before and after your vehicle is declared a total loss:

Contact your insurance agent to initiate a claim.

According to repair costs, your insurer will determine whether the vehicle is a total loss.

Your insurer will pay the actual cash value of the totaled vehicle, less your comprehensive or collision deductible.

HOW IS THE VALUE OF MY CAR DETERMINED?

To determine the value of your car (referred to as the “actual cash value” in insurance parlance) at the time of the accident, insurers typically consider a variety of factors, including the vehicle’s age, condition, mileage, and resale value, in addition to the selling price of comparable vehicles in your area.

DO I REMAIN RESPONSIBLE FOR PAYING A LOAN ON A TOTALED CAR?

If you’re financing a totaled vehicle, your insurance company will almost certainly make the claim check payable to both you and your lender, which means you’ll need to work out a payment arrangement with your lender. Typically, the lender will be reimbursed first, followed by payment to you of any remaining funds.

It is possible that you owe your lender more than the insurance payment received. In that case, you are responsible for the remainder of the lease or loan balance. For instance, suppose you owe $15,000 on your car loan but the value of your vehicle has depreciated to $13,000 when it is totaled. If you have collision coverage, your insurer will reimburse you for the vehicle’s actual cash value, which is $13,000 in this case. You would be required to pay that amount to your lender, as well as the remaining $2,000 out of your own pocket.

Adding loan or lease gap coverage to your auto insurance policy is one way to protect yourself from having to pay a lender directly for a totaled vehicle. Depending on your insurer, this optional coverage may be included in a package or purchased separately. Additionally, it may be available only for brand-new vehicles.

HOWEVER, WHAT IF THE ENTIRE LOSS WAS NOT MY FAULT?

In some instances, a totaled vehicle may not be the fault of anyone. As an example, suppose a tree falls on your parked car and your insurer declares it totaled. If you have comprehensive coverage on your car insurance policy, it is likely that you will be reimbursed for the vehicle’s actual cash value (again, minus your deductible).

If your car is totaled as a result of another driver’s negligence, your collision coverage may kick in first. Your insurer, on the other hand, may seek reimbursement from the other driver’s insurer to cover the loss. In some instances, this may imply that you will also be reimbursed for the deductible deducted from your insurance payout.

AIRBAGS HAVE BEEN DEPLOYED FROM MY CAR — IS THIS A TOTAL LOSS?

If the airbags in your vehicle deploy during a collision, this does not necessarily mean your vehicle is a total loss. Your insurance adjuster will evaluate the situation and determine whether the cost of replacing the airbags and repairing your vehicle will exceed the vehicle’s actual cash value. If the cost of repairs is less than the value of the vehicle, it is unlikely that the vehicle will be declared a total loss.

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When Is A Car Considered Totaled?
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Insurance For Leased Vs. Financed Cars

If you’re debating whether to buy or lease your next vehicle, you should be aware of the insurance coverages that may be required in either case. Some insurance coverages are required by law or by your lender, while others are optional for a financed or leased vehicle.

INSURANCE FOR A RENTED CAR

According to the Insurance Information Institute, even if you don’t “own” a leased car, you must maintain your own insurance coverage (III). For a leased vehicle, there are a few coverages to consider.

COVERAGES REQUIRED BY LAW FOR CAR INSURANCE

Liability insurance: Most states require drivers to have a certain level of liability insurance. If you cause a car accident that injures someone or damages their property, liability coverage can help pay for their expenses.

Uninsured and underinsured motorist coverage: Depending on where you live, having this coverage on your car insurance policy may be required by law. Uninsured motorist coverage may help pay your medical bills if you’re hit by a driver who doesn’t have car insurance. If you’re hit by an underinsured driver whose liability coverage limits aren’t high enough to cover your medical bills as a result of an accident they cause, underinsured motorist coverage kicks in. Personal injury protection may be required in some states instead of or in addition to uninsured and underinsured motorist coverage.

YOUR LEASE HOLDER REQUIRES INSURANCE COVERAGES

Your leased car is owned by the company that financed it. According to the III, the finance company will likely require you to carry collision and comprehensive coverage as part of your auto policy to protect its financial interest in the vehicle.

  • Collision coverage: Assists in the repair of your vehicle if you collide with another vehicle or object, regardless of fault.
  • Comprehensive coverage: Assists with the cost of car repairs if the vehicle is damaged by something other than a collision, such as theft, vandalism, or a falling object.

COVERAGES FOR INSURANCE MAY BE INCLUDED IN YOUR CAR LEASE.

According to the III, many leasing companies automatically include gap coverage in your lease payments. If you’re “under water” on your auto loan and the car you’re leasing is totaled, gap insurance can help you pay it off. Ask your leasing company if loan or lease gap coverage is included in your contract, according to the III. If not, your insurer may be able to provide coverage as part of your car insurance policy.

INSURANCE FOR A FINANCED VEHICLE

You will still be legally required to carry liability insurance when you purchase a vehicle. Uninsured and underinsured motorist coverage, as well as personal injury protection, may be required depending on where you live. Additional car insurance considerations vary depending on whether you buy a car with a loan or outright, as well as the model year of the car you buy.

HOW INSURANCE IS AFFECTED BY CAR LOANS

Your lender may require comprehensive and collision coverage on your car insurance policy if you take out a loan for a vehicle. Once your car is paid off, you may be able to change these coverages on your car insurance policy.

HOW DOES OUTRIGHT BUYING A CAR AFFECT INSURANCE?

Comprehensive and collision coverage are typically optional on your car insurance policy if you buy a car without taking out a loan (or if you pay off a loan). If you get into an accident, whether you can easily afford to repair or replace your car out of your own pocket may be a deciding factor.

HOW DOES BUYING A NEW CAR AFFECT YOUR INSURANCE?

If you’re the first owner of a car that’s only a few model years old, you might want to consider purchasing additional coverage designed for new cars. If your brand-new car is totaled, for example, new car replacement coverage may help you purchase a new vehicle of a similar make and model.

CAN YOU EXPLAIN THE DIFFERENCE BETWEEN LEASING AND FINANCING?

The most significant distinction between leasing and financing is who owns the vehicle at the end of the loan term. According to Consumer Reports, when you lease a vehicle, you do not own it and must return it to the titleholder when your lease period ends. According to Edmunds, when you lease a vehicle, you are essentially paying to “borrow” the vehicle for the duration of the lease. At the end of your lease, you may have the option to buy the vehicle.

When you finance a vehicle, at the end of your loan term, you own the vehicle (as long as you made all the required payments). The lienholder’s name will be removed from the vehicle title once you’ve paid off the loan, and the title will be solely in your name.

WHICH IS BETTER: BUYING OR LEASING A CAR?

The advantages of buying a car versus leasing one are determined by a number of factors, including the amount of your down payment, the length of your financing agreement, and depreciation.

WHAT ARE THE ADVANTAGES OF RENTING A VEHICLE?

The following are some of the potential benefits of leasing a car, according to Edmunds:

Because lease periods are typically only two or three years, you’ll be driving a new car every few years.

Because most leased vehicles are still under warranty, maintenance costs are lower.

Monthly payments and down payments are both lower.

WHAT ARE THE ADVANTAGES OF CAR FINANCING?

Some of the advantages of financing a car, according to U.S. News & World Report, include:

  • At the end of the loan period, you will own the vehicle (assuming you made all required payments)
  • There are no mileage restrictions: Most leases limit the amount of mileage a leaseholder can put on a vehicle (for example, no more than 12,000 miles per year)
  • Trying to decide whether to lease or buy a car? Speak with a local insurance agent for more information on insuring your preferred vehicle.

Auto Insurance Quotes

From offering liability protection to you and your family to helping you get reimbursed for personal property damage, auto insurance provides many types of coverage. Learn more about Auto Insurance Coverage or get a free auto insurance quote from Klimes Insurance today.

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What Not To Say To An Insurance Company After A Car Accident
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What Not To Say To An Insurance Company After A Car Accident

If you are involved in an automobile insurance company, your insurance company may be able to help you pay your medical bills and repair your vehicle. Conversations with your insurance company, on the other hand, should be strategic. Any of the following should be avoided:

Anything… Immediately Following an Accident

After an accident, don’t call your insurance company right away. You might be shocked, perplexed, or under a lot of pressure. Prioritize your medical needs while also safeguarding your legal rights. Then you can focus on getting in touch with the insurance company. Keep in mind that your goals and those of the insurance company are very different. The insurance company wants to settle the case as quickly as possible for the least amount of money possible, whereas your goal is to get the most money possible for your claim.

It was entirely my fault.

Avoid taking responsibility for the accident. When you do describe the accident, be as objective as possible and avoid adding personal opinions. The insurance companies can work out who was at fault for the accident among themselves. There could be factors you’re not aware of, such as faulty vehicle parts, a distracted driver, or a difficult-to-see traffic sign. Even if you are found to be at fault, the other driver may have played a role in the accident and be at fault as well. Avoid admitting fault in front of the other driver, police, or your insurance company, as these statements could be used against you later.

I’m not hurt.

Make no statements that you do not know to be completely true. While some injuries are obvious, others are not. You may be unaware that you have internal bleeding or a brain injury. Bruises and other signs of injury can take a long time to appear. It’s possible that your neck or back will start hurting a few days later. If you do experience pain, make an appointment with a doctor. You should not sign any medical release forms from the insurance company until you have spoken with an attorney.

This is my official declaration.

Wait until you’ve spoken with a personal injury attorney before making an official statement that will be recorded. It is not necessary for you to have your statement recorded. The insurance company may take what you say out of context or misinterpret it until it is manipulated to serve their goal.

I believe…

It’s fine to say “I don’t know” if you don’t have a factual answer to give. Don’t guess or opine on a solution. This could be true of your driving speed, distance calculations, or other estimates. Simply avoid making these kinds of guesses.

Other People’s Names

When dealing with your insurance company, stick to the basics. Don’t give them the names of your relatives, friends, or doctors. You may be asked to provide information about what you told these people and their contact information if you end up in court.

Accepted

The majority of insurance companies’ initial settlement offers are low-ball offers. Avoid accepting a settlement offer that does not fully compensate you for your injuries, even if you have mounting medical bills and are losing wages while out of work. Before accepting any settlements, consult with a personal injury attorney so that he or she can advocate on your behalf and negotiate a fair settlement.

I don’t have access to a lawyer.

The insurance company is more likely to treat your claim with respect and attention if you hire an experienced personal injury attorney. A personal injury lawyer often has more experience than a layperson with insurance laws and estimating the true value of a claim in order to account for both present and future damages. Damages may include loss of future earning potential, loss of enjoyment of life, loss of consortium, and pain and suffering, in addition to property damage, lost wages while you were recovering, and property damage.

Assistance with Legal Matters

It is critical to tell the truth and not lie when dealing with insurance companies. Individuals may, on the other hand, overindulge in information that is only used to harm them and their claim. Consult a personal injury lawyer about your case and get specific advice on what statements you should make to the insurance company.

Auto Insurance Quotes

From offering liability protection to you and your family to helping you get reimbursed for personal property damage, auto insurance provides many types of coverage. Learn more about Auto Insurance Coverage or get a free auto insurance quote from Klimes Insurance today.

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Can I Get Good Car Insurance If I'm Under 25?
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Can I Get Good Car Insurance If I’m Under 25?

“Can I get good car insurance if I’m under 25?” young drivers may wonder. Yes, that is correct. Although age is one of the factors considered in premium costs, it has no bearing on the types of coverage that young drivers can obtain for their vehicles. Here are a few ways that young drivers can get good coverage while saving money on their car insurance.

WHAT TYPE OF AUTO INSURANCE DO I REQUIRE?

When looking for quality auto insurance, young adults should think about two things: which coverages are required in your state and which optional coverages you might want to purchase to protect yourself, your passengers, and your vehicle.

To begin, keep in mind that most states require you to have auto liability insurance, which helps pay for the expenses of the other party if you cause an accident. Other coverages, such as uninsured motorist coverage or personal injury protection, may be required in some states. Finally, if you lease or finance a vehicle, the lease or finance company may require comprehensive or collision insurance. Medical payments coverage, rental reimbursement coverage, gap insurance coverage, and towing and labor cost coverage are all typically optional on a car insurance policy.

Speak with a local insurance agent if you have any questions or need assistance selecting coverages that are right for you.

DISCOUNTS ON CAR INSURANCE FOR FULL-TIME STUDENTS UNDER THE AGE OF 25

If you’re a full-time student under the age of 25, you may be eligible for a car insurance discount that will help you save money on your premiums. Many insurance companies stipulate that student drivers may qualify for a student discount if they maintain a B average. The main reason you want to do well in school is to earn a diploma and get a good job, but saving money on auto insurance could be the cherry on top.

DO YOU HAVE AN INSURANCE POLICY FOR RENTERS?

Do you rent an apartment after you’ve moved out of your parents’ house? Renters insurance holders may be eligible for a multi-policy discount. Check with your insurer about bundling your auto and renters insurance policies if you buy both from the same company.

CAN YOU TELL ME WHAT YOU DO FOR A LIVING?

Young adults who work for certain corporations, or even a small- to medium-sized business with special discount programs, may be eligible for a discount on auto insurance. Find out if your company participates in a group car insurance discount plan by speaking with your human resources department.

You probably don’t spend much time on the road if you’re self-employed and work from home or primarily work out of your home office. You could also choose to take public transportation to work on a regular basis. You might be able to get a pay-per-use car insurance policy if you don’t drive your car very often. Always check with your agent to see what’s available in your area.

There are numerous other discounts available to young adults under the age of 25. Examine all of your options and speak with a representative to ensure that you are receiving all of the available discounts. If you do, you may discover that getting good car insurance under 25 is not only possible, but also affordable.

Auto Insurance Quotes

From offering liability protection to you and your family to helping you get reimbursed for personal property damage, auto insurance provides many types of coverage. Learn more about Auto Insurance Coverage or get a free auto insurance quote from Klimes Insurance today.

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When Is A Car Considered Totaled?
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How Is Fault Determined After A Car Accident?

After a car accident, insurance companies determine fault based on state laws and the circumstances of the accident. Continue reading to learn more.

WHAT IS A NO-FAULT ACCIDENT IN A CAR?

In states with no-fault insurance laws, a no-fault car accident occurs. Personal injury protection is required by law in 16 states. Personal injury protection (PIP) covers medical expenses incurred as a result of a car accident, regardless of who caused it.

Take note that in no-fault states, property damage claims are still paid on an at-fault basis. That means that if another driver damages your car, their insurance coverage may help cover the cost of repairs.

WHAT IS AN ACCIDENT DUE TO NEGLIGENCE?

In states without mandatory PIP coverage, an at-fault car accident occurs. The at-fault driver’s automobile insurance contributes to the payment of injury and property damage claims.

Consider the following scenario: you are at fault for colliding with another person’s parked car. Your auto liability coverage would be used to assist with the repair of the other driver’s vehicle.

Following a car accident, it’s critical to take a few critical steps to protect yourself and comply with the law. After ensuring everyone’s safety, you’ll likely want to contact the police and file a report, documenting the details of the accident and exchanging information with the other drivers. By following these steps, you can ensure that you are prepared to file a car insurance claim.

INSURANCE COMPANIES: HOW DO THEY DETERMINE FAULT?

The manner in which an insurance company determines fault is determined by state law and the circumstances surrounding the accident.

State Laws Regarding Negligence

State laws governing who is at fault versus who is not have an effect on how auto insurance claims are paid. Additionally, the way in which state laws define negligence has an effect on how fault is determined and claims are paid.

Oftentimes, a car accident is not solely the fault of one driver. Based on the circumstances surrounding the accident, an insurer may assign a percentage of blame to each party involved.

For instance, suppose a speeding driver rear-ends your vehicle as you abruptly changed lanes. It is possible that both of you are partially responsible for the accident. The other driver may be found to be 60 percent at fault, while you may be found to be 40% at fault.

The degree to which you are found negligent has an effect on how much of your claim settlement you receive following a car accident. Additionally, each state’s laws regarding negligence vary.

Depending on where you live, you may encounter the following terms during a third-party car insurance claim:

Negligence in Comparative Terms

If your state follows a pure comparative negligence standard, you may be able to recover accident-related expenses from the other driver based on their degree of fault in the accident.

For instance, if the other driver is 60% at fault, their insurance company may cover up to 60% of your medical and repair expenses. You (or your insurance company) would be responsible for the remaining 40%.

Comparative Negligence

If your state uses pure comparative negligence, you may recoup accident-related expenses from the other driver based on their degree of responsibility for an accident.

For example, if the other driver is 60 percent at fault, their insurance company may pay up to 60 percent of your medical expenses and repair bills. You (or your insurance) would pay the remaining 40 percent.

The states that use pure comparative negligence are:

  • Alaska
  • Arizona
  • California
  • Florida
  • Kentucky
  • Louisiana
  • Mississippi
  • Missouri
  • New Mexico
  • New York
  • Rhode Island
  • Washington

Modified Comparative Negligence

If your state uses modified comparative negligence, you may not recoup expenses from the other driver if you’re more than 50 or 51 percent at fault for an accident.

In those states, you would have to pay for your own medical expenses or repair bills, even if the other driver was partially at fault.

The states that use modified comparative negligence are:

  • Arkansas
  • Colorado
  • Connecticut
  • Delaware
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Maine
  • Massachusetts
  • Michigan
  • Minnesota
  • Montana
  • North Dakota
  • Nebraska
  • Nevada
  • New Hampshire
  • New Jersey
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • South Carolina
  • Tennessee
  • Texas
  • Utah
  • Vermont
  • West Virginia
  • Wisconsin
  • Wyoming

Contributory Negligence (Or Pure Negligence)

If your state uses contributory negligence, you may not recoup expenses if you bear any responsibility for an accident.

For instance, even if you were only 5 percent responsible for the accident, you would not get paid from the other party’s insurance.

The states that use contributory negligence are:

  • Alabama
  • District of Columbia
  • Maryland
  • North Carolina
  • South Dakota
  • Virginia

Remember that recouping your costs after an accident depends on state laws and the car insurance coverage on your and the other driver’s policies.

Accident Details

Typically, when you file a claim, an insurance adjuster is assigned to your claim. The adjuster will gather details about the accident. This may include reviewing the police report, interviewing involved parties and assessing photos of damage. Based on their review, the adjuster works with the insurer to determine who’s at fault for the accident.

Your car accident claim may be paid in a number of ways, depending on your insurer and who is at fault. Your insurer may pay part of your claim, based on the coverage you have on your own auto insurance policy. Or, you may get a claim payment from the other driver’s insurer.

If you have questions, reach out to your insurance agent or the adjuster assigned to your claim.

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Extra insurance for a new car: 3 key coverages
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Bodily Injury Liability Insurance: What It Is And What It Covers

If you cause a car accident that injures another person, bodily injury liability coverage helps pay for their medical expenses and lost income as a result of their injuries. This coverage may also help pay for your legal fees if you’re taken to court over an accident. Most states have laws that require you to have bodily injury liability coverage on your car insurance policy.

WHAT DOES BODILY INJURY LIABILITY COVER?

If you are at fault for an accident that injures someone else, bodily injury liability coverage may help pay for the following three types of costs:

Medical expenses:

Bodily injury liability insurance helps pay for someone else’s emergency services and hospital care if you cause a car accident. It may also help cover their necessary follow-up doctor visits and other associated costs, like having to buy crutches or a wheelchair.

Compensation for lost wages and income:

If you hit another car and the other driver is injured, they may need to attend months of physical therapy as part of the recovery process. Or, perhaps the person who was injured in the accident loses income or wages because he cannot work or perform the normal functions of his job. Bodily injury liability coverage in your car insurance policy may help pay their compensation in this case. Your state’s laws may place limits on the amount of compensation the injured person can receive for lost income.

Legal fees:

After an accident resulting in injuries, you could be taken to court by either the injured party or the injured party’s insurance company. This may require you to seek legal counsel, which can be costly. Bodily injury liability coverage may help pay for your legal fees.

WHO DOES BODILY INJURY LIABILITY COVER?

Bodily injury liability insurance helps pay the costs described above for another person or people that are injured in a car accident where you’re found liable. This may include a driver or passengers in another car, pedestrians or unrelated passengers in your own car. This coverage does not pay for you or your family’s medical expenses or lost income if you cause the car accident. But, it may help pay for your legal expenses if you’re taken to court over an accident you caused

HOW MUCH BODILY INJURY LIABILITY COVERAGE IS REQUIRED?

When choosing bodily injury liability coverage, state laws typically dictate a minimum liability coverage limit drivers must purchase. It’s a good idea to check your state’s requirements and work with your insurance company to determine how much coverage is appropriate. You should also keep in mind that you may be able to buy more coverage by increasing your liability limits.

Lastly, keep in mind that if you accidentally injure someone and their medical expenses exceed your bodily injury liability coverage limits, you may have to pay out of pocket to cover the remaining costs. That’s why it’s important to consider how much bodily injury liability coverage is enough for your situation — and why you may want to purchase limits that are higher than your state’s requirements.

BODILY INJURY LIABILITY COVERAGE LIMITS

Bodily injury liability coverage is subject to a limit, which is the maximum amount your car insurance policy will pay toward a covered claim. Bodily injury liability coverage generally has two coverage limits: a per-person limit and a per-accident limit.

Per-person limit

The per-person limit applies to each person injured in an accident. For example, say your per-person limit is $50,000. That means if one person is injured in a car accident, the most your bodily injury liability would pay for all of their medical expenses is $50,000.

Per-accident limit

The per-accident limit applies to each accident in which multiple people are injured. Suppose your per-accident limit is $100,000. That means if you cause a car accident that injures three people, the most your bodily injury liability would pay for their combined expenses is $100,000 (and only up to the per-person limit for each person injured).

Some states may also allow you to choose a combined single limit for bodily injury and property damage liability coverage. That means if you choose a combined limit of $250,000, for example, your policy would pay up to that amount toward property damage or bodily injuries combined.

UMBRELLA INSURANCE AND LIMITS

Personal umbrella insurance is a way to purchase extra liability coverage that goes above liability limits in another insurance policy. That means if you cause an accident and reach your auto policy’s liability limits, the umbrella policy would kick in to help pay the remaining covered costs.

For example, say your auto policy has a bodily injury liability coverage limit of $250,000, but the other driver’s medical bills are $300,000. Without umbrella insurance, you may be responsible for paying the extra $50,000 in medical bills out of your own pocket. A personal umbrella policy would help cover those additional costs, up to the policy’s limit.

HOW IS BODILY INJURY LIABILITY COVERAGE DIFFERENT FROM PROPERTY DAMAGE LIABILITY COVERAGE?

Liability coverage has two components: bodily injury liability and property damage liability. Both coverages are required by law in most states.

Property damage liability coverage helps pay for damage you cause to another person’s vehicle or property. For example, if you hit someone else’s car, mailbox or front porch with your car, property damage liability coverage may help pay to repair their property. And, like bodily injury liability, most states require you to carry a minimum limit of property damage liability coverage.

Bodily injury liability coverage helps pay for another person’s expenses if you injure them in a car accident. Remember, this type of coverage typically helps cover someone else’s medical bills.

If you need help understanding your state’s bodily injury liability coverage limits, talk to a local agent. They can help you customize a policy and choose limits that fit your personal needs.

Auto Insurance Quotes

From offering liability protection to you and your family to helping you get reimbursed for personal property damage, auto insurance provides many types of coverage. Learn more about Auto Insurance Coverage or get a free auto insurance quote from Klimes Insurance today.

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When Is A Car Considered Totaled?
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What Happens When Your Car is Totalled?

When the cost of repairing a car exceeds the worth of the car, it is called totaled. Some states have rules that set specified thresholds for what constitutes a totaled vehicle. In Alabama, for example, an automobile can be declared totaled if the damage exceeds 75% of its worth. If a vehicle is worth $5,000 and the repair estimate is $4,000, the vehicle will very certainly be considered wrecked.

In some circumstances, the insurer decides whether or not a car is a total loss.

Comprehensive and collision coverage assist in the replacement of a totaled vehicle. If you’re leasing or financing your vehicle, these two coverages are usually required on your auto insurance policy. They’re not required if your car is paid off. However, if your car is totaled and you don’t have comprehensive or collision coverage, you may have to pay for a replacement car out of pocket.

WHAT HAPPENS IF MY CAR IS TOTALLY DESTROYED IN A CRASH?

  • If you’re in a car accident, there are a few things you should do before and after your automobile is declared totaled:
  • Initiate an insurance claim with your agent.
  • Based on repair costs, your insurer will evaluate whether the vehicle is a total loss.
  • Your insurance will pay you the actual cash worth of the totaled vehicle, less your comprehensive or collision policy deductible.

CALCULATING A TOTAL LOSS

Following an accident, the first step is to make an insurance claim with the other driver’s insurer. To guarantee that you are adequately reimbursed, the material included in this claim should be carefully assembled. In some cases, the Kelley Blue Book value of your vehicle may not accurately reflect the true value of the vehicle. Modifications such as a new radio system or newly installed new tires may have an impact on the vehicle’s overall appraised worth.

This information will be used by the insurance adjuster to evaluate the vehicle’s value prior to the accident. The cost of repair is then compared to this figure. When the cost of repair exceeds a percentage of the total value established by the insurance, a total loss is reported. State laws limit this proportion, requiring a declaration of complete loss when damages exceed 70% of the vehicle’s total worth. In making this calculation, the insurer may use a higher (but not a lower) percentage than the state.

When a car is declared totaled, the insurance is required to compensate you for the vehicle’s pre-accident worth. They will not replace your car or guarantee that the pre-accident worth of the vehicle will be sufficient to acquire a replacement. In most cases, you won’t be able to keep the wreck to sell or utilize for parts. Accepting a settlement amount authorizes the insurer to take custody of the totalled vehicle, which they will either sell to a scrap yard or fix and resell as a salvage titled vehicle.

When a car is totaled and you are not at fault, there are a lot of concerns that can develop. One problem is an insurer’s appraisal of the wrecked vehicle’s worth that is too low. Following an insurance adjuster’s offer, you can respond with arguments and facts supporting a higher estimate of the vehicle’s value. This may result in a policy change, but if the insurer refuses to appropriately value the car, you may need to file a legal lawsuit against them.

A second issue arises when the totaled car was purchased with a loan and the amount owed exceeds the insurer’s estimated worth of the vehicle. In this case, you may be responsible for the cost of the car that was totaled due to no fault of your own. Unfortunately, the car’s destruction has no bearing on the loan agreement. As a result, your only option may be to argue for a higher vehicle value.

WHERE DOES THE VALUE OF MY CAR COME FROM?

Insurers often utilize a variety of variables to evaluate your car’s worth (the “actual cash value” in insurance parlance) at the time of the accident, including its age, condition, mileage, and resale value, as well as the selling price of similar vehicles in your area.

DO I HAVE TO PAY A LOAN ON A TOTALED CAR EVEN THOUGH IT IS TOTALED?

According to the Insurance Information Institute (III), if you’re financing a totaled car, your insurance company will likely make the claim check payable to both you and your lender, which means you’ll have to work out a plan with your lender on how to release the money. The lender is usually reimbursed first, with any remaining funds being paid to you.

It’s possible that you still owe more on the car to your lender than the insurance payment you receive. The remaining debt on the car lease or loan is your responsibility in that instance. Let’s say you owe $15,000 on your automobile loan, but the value of your vehicle has depreciated to $13,000 when it’s totaled. If you have collision insurance, your insurer will pay you the real cash worth of your automobile, which in this example is $13,000. You’d have to pay that amount plus the remaining $2,000 out of your own pocket to your lender.

Adding loan or lease gap coverage to your automobile insurance policy will help shield you from having to pay a lender out of pocket if your vehicle is totaled. This extra coverage may be available as part of a package or as a stand-alone policy, depending on your insurer. It’s also possible that it’ll just be accessible for brand-new vehicles.

WHAT IF IT WASN’T MY FAULT THAT THE TOTAL LOSS HAPPENED?

In some circumstances, a totaled car is not the fault of anyone. Let’s say a tree falls on your parked automobile, and your insurance company considers it totaled. Your automobile insurance policy’s comprehensive coverage will most likely reimburse you for the vehicle’s real cash worth (again, minus your deductible).

Your collision coverage may kick in first if your automobile is totaled in an accident caused by another motorist. Your insurer, on the other hand, may seek reimbursement from the other driver’s insurer to offset the loss. In some situations, this may imply that you will be compensated for the deductible deducted from your insurance claim.

IS IT A TOTAL LOSS IF MY CAR’S AIRBAGS ARE DEPLOYED?

When your automobile’s airbags deploy after a collision, it doesn’t necessarily imply your car is a total loss. Your insurance adjuster will evaluate the circumstances and determine if the cost of replacing the airbags and fixing your car would surpass the vehicle’s actual cash value. If the cost of repairs is less than the automobile’s value, it is unlikely that your car will be ruled a total loss.

Do you have any further questions about auto insurance coverages or a totaled vehicle? Speak with a local representative.

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