When looking for auto insurance quotes, it is advisable to take time and compare the different rates offered by different companies. Committing to the first insurance company that you come across is your undoing because you might be missing on a better and cheaper option elsewhere.

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Insurance companies are in stiff competition and so they have to prove that their services are not only better in terms of quality but cheaper too. The more the competition, the lower the rates come down. So before settling for any quote, always remember there could be a cheaper one somewhere and keep looking until you are sure that that’s the best deal you can get anywhere. A cheaper deal will mean more savings on your part and a good relationship with your insurer because you will view them as considerate.

The best way to compare insurance quotes is online. Recent studies show that a majority of car insurance seekers search for the best insurance company to sign up with on the net. The method is faster and also more comprehensive. You are able to compare many insurance companies using a free online auto insurance comparison site. It is faster than dialing each company’s office and making enquiries.

The best way to get the cheapest car insurance quote and thus save money is by using the free comparison services online. These services are operated by people who deal with thousands of agents and so they negotiate the rates on your behalf. Because they want to win a client, they will often lower the rates when they realize that another agent is better placed to get the client because they are charging lower. So, the best quote, in quality and price, wins and you get to save some hard-earned money.

These are three golden things to remember:

1. Agents are fighting over your business;
2. Agents will thus lower their rates;
3. You end up benefiting by getting the best deal.

What is insured?

Any light motor vehicle used for social, domestic and pleasure purposes and for the insurer’s business.

Insured against what risks?

1. 1(a). Loss or damage by accident, fire, lightning, self ignition, external explosion, burglary, housebreaking or theft, malicious act. 1(b). Riot and strike; terrorism; earthquake; flood, cyclone and inundation 1(c). whilst in transit by rail, road, air, elevator, lift. Perils under 1(b) can be deleted and a discount in premium availed.
2. Liability for third party injury/death, third party property and liability to paid driver.
3. On payment of appropriate additional premium, loss/damage to electrical/electronic accessories, PA cover for drivers, insured or any named person, unnamed passengers can also be taken.
4. Certain discounts in premia are also available.

Who can insure?

Individuals and corporate owners of the private cars and the financier of the car having insurable interest in it.

What will policy pay and how much?

Own Damage

• Actual amount spent for repairs/replacement subject to depreciation and sum insured as per survey report.
• Garaging and towing charges – up to Rs 1000/-
• Damage to tyres (when vehicle is also damaged) – 50 % of cost of replacement
• In case of total loss, market value at the time of loss or sum insured whichever is less.

Act Liability

• Death or bodily injury to third parties – Unlimited
• Death or bodily injury to any person carried in the car provided they are not insured employees and not carried for hire or reward – Unlimited
• Liability to paid driver – As per W. C. Act
• Third party property damage – up to Rs 6000/-
• All costs and expenses incurred with company’s written consent

In case of death of the Insured/any person entitled to indemnity for a liability incurred under this Policy,his personal representative will be indemnified ,as in the case of insured,if he observes all conditions as the insured himself.

When will policy not pay?

• Consequential loss; depreciation; wear and tear; mechanical and electrical breakdown; failure or breakage.
• When vehicle is used outside the geographical area; when used contrary to limitation as to use; driven by a person other than the driver stated in driver’s clause
• War perils, nuclear perils and drunken driving

Care should be taken to come to a car accident insurance settlement that takes all reasonable future injury-related problems into consideration. Your physician should be consulted for information on your prognosis for recovery and any potential problems that could occur down the road. Then, armed with all pertinent information, and after negotiating with the claims adjuster either on your own or with the assistance of an attorney, you may be able to reach a settlement that is satisfactory to you. If you do, congratulations! Now how do you get the money? Not so fast!

Once you have settled your claim, the insurance company will want to make sure that you cannot come back to their insured later and sue for more money. They will, therefore, ask you to sign a form called a Release and Waiver. You want to be certain that the conditions on the waiver are reasonable, and that the money will be paid to you promptly. As with any legal document, it is important to have an car accident lawyer review it and advise you before you put your signature on it. After you sign it, it will be too late to question any of the conditions or terminology used.

Caution: As the releasing party, by settling your claim and signing the Release and Waiver, you are required to give up all known and unknown claims against the driver that caused the accident. This means, for example, that if your back pain from the accident suddenly makes a return appearance a year from now, you cannot go back and sue the other driver from the accident for additional compensation. Make sure you understand what you are signing and what will happen after you sign. An attorney will make certain that you are fully aware of your rights and what rights you are giving up by signing this document. That is why it is so important to seek legal counsel to assist you with this process.

Once you sign and return the Release and Waiver, the insurance company will send you either a bank draft or a certified check. At that point, the money is yours!

Suppose, however, that the adjuster makes an offer much lower than you counted on. Note that adjusters have a settlement range and will typically begin at the lowest figure. Their job is to settle the claim for the least possible amount of money. You may venture into back-and-forth negotiations for a while, but no matter how long you have been negotiating, when he gets to the top of his range, there will be no further offers. What happens if you reach an impasse?

Here are some options to bring your claim closer to settlement, even if you have reached an impasse:

• Seek advice from an car accident lawyer to determine if the settlement amount you have in mind is a reasonable amount based on the facts and documentation.
• If you want to continue negotiating on your own without an attorney, write a letter to the insurance company to support the value you have placed on your claim. You may want to include any additional documentation and/or information not previously provided.
• Go up the chain of command and speak to the adjuster’s supervisor or manager. Adjusters get their dollar authority to settle from their higher-ups and may not have convinced them the claim is worth more than what is being offered. Perhaps you can convince them.
• Request alternative dispute resolution (mediation or arbitration).
• File a Complaint with your state’s Department of Insurance.
• Hire an attorney to continue the negotiations for you; most people are not born negotiators.

If your car accident attorney reaches an impasse and is convinced your case has greater value than the insurance company is assigning it, that’s when you file a lawsuit against the negligent driver to have the court decide.

Note that if you are having trouble resolving a claim with your own insurance company, for example, an uninsured motorist claim or a collision claim where your vehicle was deemed a total loss, you also have options. You may not only file a complaint with the Department of Insurance, but you may sue your insurance company for Bad Faith.  Be sure to hire an attorney who is well versed in insurance bad faith cases.

Whether it is your insurance company’s adjuster or the other driver’s, many of the questions asked and documents requested will be the same. They will want to know what happened, the people and vehicles involved, what was damaged, and if anyone was injured. They’ll want photos taken of your vehicle and an estimate for the damages, a copy of the police report if there is one, and contact information for any witnesses.

Some of the questions both insurance company adjusters will ask are:

• What happened in the accident?
• Where did it occur?
• Who was driving?
• Any passengers in the vehicle? Names/contact information/ages?
• Was a policeman called to the scene? Did the officer prepare a report?
• What vehicles were involved? Makes, models, years, colors, registered owners?
• Were the vehicles damaged? What parts? Were the cars drivable?
• Was anyone injured? Did anyone leave by ambulance?
• Any witnesses? Contact information?
• Does the other party have insurance? Insurance company name and contact information?

Beyond these questions, there are some differences between not just what the insurance company will ask, but the attitude they take depending on whether it is your own insurance company or the other driver’s. Of course your own insurance adjuster will want to know if you were injured and will ask for details of your injury and treatment, but they are only responsible under your policy for paying your medical bills up to your policy limits. They do not, however, pay for your lost wages or your pain and suffering unless you live in a no-fault state.

If, however, you are talking to the other driver’s insurance company, their job is to keep your car accident insurance claim as small as possible. Why? If their insured was at fault for the accident, they may be responsible for paying not just for your medical bills and the damage to your vehicle, but your lost wages, other expenses you incurred or will incur in the future, and general damages which include your pain and suffering. Since they could be on the hook for a lot more money than your own insurance, you’ll find some skepticism when being questioned and you have to be careful about what you say. They will try to get you to state that you have no injury, or try to minimize your personal injury claim, and get you to sign a Release and Waiver before you know what’s going on. If you were injured, you may want to speak to an attorney before talking to the other driver’s insurer so you avoid saying or signing the wrong thing which could hurt your chances of making a personal injury claim or getting paid what you deserve down the road.

What the other driver’s insurer may ask:

• What part of your body was injured?
• Have you had any injuries or treatment to that body part ever before?
• When was the last time you were treated for an injury to that body part?
• What was your doctor’s diagnosis at that time?

This line of questioning is meant to set you up. Suppose your lower back was injured in the accident. Most people have had some back problems at some point in their lives. If you tell them that 10 years ago you injured your back at work, they may try to say this was just an aggravation of the old injury and assign it less value even if it’s been fine for the last 9 years. This is why talking to a car accident attorney first may be your best bet to protect your rights, and be certain you will get a fair settlement.

Review your declarations page at once. It is important to review your declarations page carefully to make certain that the information is correct and to contact your agent to make any changes. Most savvy consumers realize that sometimes the price or coverage you were quoted is not the same as what gets put into the contract. Therefore, the time to review this information is when you receive the policy. While you may have requested liability coverage of 40/80/20, if the declarations page reads 30/40/10, THAT’S what you will get. Don’t rely on phone conversations or emails – look at what is in writing to insure that you adequately covered.

Policy renewal. Consumers should be aware that some insurers do not send an entirely complete policy upon renewal; you may only receive the declarations page. This usually only happens when your coverage amounts have not changed – although your premiums usually will. If you’d like to have the complete policy, contact your insurer and have them send it to you. If you’re ok with just receiving a new declarations page, save your most recent complete policy for reference.

A “Tort” policy follows the same bodily injury insurance claims procedures as in “Fault” states. Regarding a car accident, a tort is a wrongful act that renders the negligent driver liable to the injured party for damages. A tort policy, therefore, is one that provides the insured with coverage if someone is injured and files a car accident claim against the insured’s policy. Unlike no-fault where everyone is covered under their own policy, with a tort or fault-based system, the negligent party’s insurance pays the damages of those who are injured and not responsible for the accident. In general, there are few limitations on suing the responsible party.

If you choose a “No-Fault” policy in one of the Choice States, there is coverage under the policy called Personal Injury Protection, or PIP, just like the “no-fault” only states. (See Bodily Injury in a No-Fault State) If you are injured and someone else is at fault, your medical and some other expenses will be covered by your own PIP coverage up to your policy limits. Just like with the no-fault only states, there are some differences in coverage depending on the state. In Kentucky, for example, basic PIP coverage is $10,000 combined for medical expenses, loss of income or services, and funeral expenses. You forfeit your right to sue the other driver for the cost of your medical treatment, and non-economic damages (e.g. pain and suffering), unless: the injury involves a broken bone, permanent disfigurement, medical expenses over $1,000, permanent injury or death. The law also allows Kentucky auto insurance companies to sell you back the right to sue (even though you carry PIP) for an increase in your premium.

In New Jersey, the no-fault policy may include much higher PIP limits than in many other states, of $250,000 per person, per accident, unless a lower limit is selected for a lesser premium. However, New Jersey’s no-fault policies include up to $250,000 coverage for permanent or significant injury as defined in the policy regardless of the limit selected. This is your own coverage, without suing the negligent party.

Pennsylvania offers both a tort policy and a limited tort policy, rather than “no-fault”. Under the tort policy, you have an unlimited right to sue. Under the limited tort scheme, you can sue for direct expenses, but not for non-economic damages (like “pain and suffering”) unless your injuries are very serious. Purchasing a policy under the limited tort system reduces your premium. Due to the complexity of the system, if you are injured by a negligent driver, it would probably be best to consult with an attorney.

Under the no-fault system in Washington, D.C., you can purchase personal injury protection (PIP) coverage for you and your passengers. This policy is any combination of coverages for medical expenses, loss of income, and funeral expenses. You may still be able to sue the negligent party if the injury qualifies under one of the many exceptions to the no-fault rules there. Consult an attorney to learn about what those exceptions are and how they work.

In general, if you are in a choice state, because the laws are still in flux with regard to the no-fault and limited tort policies offered, it is always best to contact an attorney well versed in insurance law and personal injury cases to assist you with your claim.

The No-Fault states are: Hawaii, Florida, Kansas, Massachusetts, Michigan, Minnesota, North Dakota, New York and Utah. The Choice states are Kentucky, New Jersey, Pennsylvania, plus the District of Columbia.

Under a pure no-fault system, your own auto insurance policy would pay for any economic damages including medical bills and lost wages up to your policy limits. You would be prohibited from suing a negligent driver for general damages such as pain and suffering, loss of companionship, etc. Currently, there are no pure no-fault states. All of the no-fault states have somewhat of a modified system where your insurer pays for your economic damages up to the policy limits, but you may be allowed to sue for non-economic or general damages (i.e., pain and suffering, loss of services, etc.) if those damages exceed a certain level. In some states that level is $250,000; in others it is higher, and in still others, you or your family may sue only if the injuries are “serious” or resulted in death, regardless of the dollar amount.

The section of your policy that covers you for bodily injuries (and your bodily injury claims) in a no-fault state is called Personal Injury Protection, or PIP. Although different states cover different things, in general, PIP covers your medical bills, lost wages, funeral costs and death benefits up to your policy limits. Most of the states have a minimum of $10,000 coverage for PIP which can be increased for a higher premium. In some states you can decrease your premium by applying a deductible.

No-fault insurance coverage can be very complex and you may want to consult apersonal injury lawyer to help you through the process. Here is an example of how complicated it is in Massachusetts. There, every driver must carry personal injury protection (PIP) coverage with a minimum of $8,000 per person which covers the following benefits:

• Medical expenses (including eye glasses, prosthetic devices, funeral services and professional nursing);
• Seventy five (75%) percent of lost wages or lost earning power if unemployed; and,
• Payment to people for necessary services they rendered to the household, which the injured party would have performed without pay (i.e. cleaning, etc.).

Your Massachusetts PIP coverage will only pay the first $2,000 of your medical bills, but will cover up to total of $8,000, if you have no other health insurance. The expenses or losses must be incurred within two (2) years from the date of the accident.

In Massachusetts, you may sue the negligent driver for general damages only under these circumstances:

• Your reasonable and necessary medical bills exceed $2,000, or
• There is permanent or serious disfigurement, or
• A fracture, or
• Partial or complete loss of a body part, or
• Loss of sight or hearing, or
• Death

All of the other No-Fault and Choice states are variations on this theme, but with some major differences in limits and rules for filing suit. Check with your insurance agent, your insurance company, your state’s Department of Insurance, or a car accident lawyer if you have any questions about your state’s rules, individual coverages or your right to sue.

The person who handles your claim is called a claims adjuster, and he or she will want to take a recorded statement from you regarding the facts of the accident, the damage to the vehicles, and in what way you were injured. Please keep in mind that it is the adjuster’s job to have you minimize your car accident claim so the insurance company doesn’t have to pay out a lot of money to settle it. If you have more than a very minor injury, you may want to speak to a lawyer first so you avoid saying or signing the wrong thing and hurting your chances of getting the settlement you deserve to make you “whole” again. Without an attorney, be prepared to answer on your own, questions such as:

• What injuries do you have?
• Did you leave the scene of the accident in an ambulance?
• What medical treatment have you received?
• What medical providers have treated you?
• What was the doctor’s diagnosis?
• Are you still being treated?
• Do you have a history of injury to the same body parts?
• When was the last time prior to the accident that you were treated for pain to these body parts?
• Do you have any residual pain or injuries?
• How much were your medical bills?

Whether you deal with the adjuster on your own, or with the assistance of a car accident lawyer, in addition to the above questions, here is what to expect. You will be asked to supply sufficient documentation to support your claim. This may include a request to sign a medical authorization, allowing the insurance company to obtain your medical records and bills from your treating healthcare providers. (See Medical Authorization Forms.) You will be asked for proof of lost wages or lost income. If you are self-employed, this may include your income tax records for the previous year or more. Documentation supporting other expenses you may be claiming will be requested, as well, such as receipts for travel to medical appointments, cancelled checks to pay a housekeeper if you couldn’t take care of your home yourself, etc. Then you or your attorney will have to negotiate a settlement.

Note that bodily injury claims may have a dollar limit or strict rules regarding when you can and cannot sue in some states where they have only “no-fault” auto insurance policies. Most states are “fault-based” and if the party you are filing a claim against was partially or totally at fault for the accident, you should get a fair settlement or you are allowed to sue. In a no-fault state, however, you file your injury claim not with the responsible party’s insurance company, but with a special coverage on your own policy called Personal Injury Protection (PIP). (See Bodily Injury in a No-Fault State and Bodily Injury in a Choice State.) You may still sue the responsible party, but only if there were serious injuries or death. Other rules may apply, as well. (See Fault and No-Fault Car Accidents: Who Pays the Bills? for more information about fault and no-fault laws and states.)

It is important to check with your insurance company, your state’s department of insurance or an attorney if you have any questions about your state’s rules, your individual coverages, and your right to sue.

What if liability is unclear?

If you are partially at fault for the accident or it’s not clear who was at fault, it’s best to go through your own insurance company and then let the two insurance companies duke it out in subrogation. Your insurance company may get some of their money back that they paid out to repair your car, and you may get a percentage of your deductible back if the companies agree on how fault should be apportioned.

Where it will make more of a difference to you is with regard to your injuries (if you were injured) in the accident. If you were partially at fault, you will only collect a percentage of your damages, including your pain and suffering damages (compensation for the physical and mental distress suffered as a result of an injury). If it’s not clear who was responsible, it may have to be decided in court or by an arbitrator. If you were injured, and liability is not clear, even if the insurance companies decide on a percentage with regard to the property damage, you should hire a personal injury lawyer who will advocate for your position and get you a larger percentage of your damages for your injury.

How about if your car is a total loss?

If your car was a total loss (it would cost more to repair than the value of the vehicle), and you are making a property damage claim for it with the other driver’s insurance, don’t be surprised if you wind up having to negotiate with them regarding the value of your vehicle. (See What Your Options Are When Your Car is Totaled.)

What if you also have an injury?

If you are injured, when you talk to the other insurance company about property damage, be careful what information you give them. The adjuster may try to get you to state that you have no personal injury claim or try to have you minimize your claim. Talk to a personal injury lawyer so you avoid saying or signing the wrong thing and hurt your chances of making an injury claim down the road.

Fault vs. No-Fault state

The relationship between fault and who ultimately pays for damages and injuries determines the outcome in car insurance claims and car accident cases across most states. There are some states, however, that operate under no-fault laws. Essentially, under no-fault laws, it doesn’t matter who was at fault. Each person’s own insurance company pays for his or her expenses, depending on that state’s specific laws and rules. (See Fault and No-Fault Car Accidents: Who Pays the Bills?for information about the laws in particular states.) 

No-fault does not usually apply to property damage. Even in a no-fault state, you may either go through your own insurance or the other party’s insurance if the other party is at fault. Only Michigan requires a PPI policy—Property Protection Insurance—which pays for damage to your vehicle no matter who was at fault. It is similar to collision, but you will pay no deductible.

Note: Although the adjuster will likely take photos of your damaged vehicle, you should take your own pictures if you can in case there are any questions later on about the damage.