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Types of auto insurance: What coverage do I need?

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Your car insurance coverage may look different from someone else’s, depending on factors like where you live and whether you lease or finance your vehicle. Overall, there are six common types of auto insurance, plus a few additional types of auto coverage you may want to consider.

Knowing what’s required and considering your financial situation are key to choosing a policy that’s right for you.

What does a basic car insurance policy include?
There are six types of auto insurance that are commonly required. Here’s what they’re all about.

  1. Liability coverage
    Liability coverage is required in every state except New Hampshire and Virginia. In Virginia, if you don’t get liability coverage, you must pay an uninsured-motorists vehicle fee.

This type of insurance usually includes two types of coverage — bodily injury liability coverage and property damage liability coverage — both of which can protect you financially against other people’s claims in the event of an accident.

If you caused an accident, your bodily injury liability insurance would help protect you against the cost of the other driver’s claims for damages, including medical expenses and lost wages. Your property damage liability insurance would help cover the cost of any damage you caused to the other person’s property, including their vehicle.

While costs vary by state, the average liability premium nationwide was around $650 in 2019, according to the 2022 Auto Insurance Database Report — the most recent data from the National Association of Insurance Commissioners, or NAIC.

  1. Uninsured/underinsured motorist coverage
    Your liability insurance may also include uninsured or underinsured motorist coverage. Unlike the two types of liability coverage mentioned above, this type of insurance protects you directly from other drivers. It pays you if you’re injured in a hit-and-run accident or by a driver who either doesn’t have liability insurance or doesn’t have enough to cover your damages.

Uninsured motorist coverage is required in more than 20 states and the District of Columbia. Minimum coverage requirements vary by state, so be sure to check your state’s financial responsibility laws to be sure you have enough coverage.

  1. Personal injury protection
    You may have heard the terms “no-fault insurance” or “no-fault states.” In states with no-fault laws, every driver involved in an accident must file a claim with their own insurance company, no matter who caused the accident.

In these states, all drivers are required to carry personal injury protection, or PIP. PIP helps cover expenses like medical bills, lost income and funeral expenses for you and any passengers in your car.

  1. Medical payments coverage
    Similar to personal injury protection, medical payments coverage helps pay for the medical and funeral expenses for you or any passengers in your car. This insurance may also cover you if you’re hit by a car as a pedestrian.

Medical payments coverage is usually an alternative to PIP and may not be available in no-fault states, or states where you can buy PIP coverage. Unlike PIP, medical payments coverage is usually optional.

Medical payments coverage may cover many of the same expenses as your health insurance, so make sure you’re not duplicating your insurance coverage.

  1. Collision coverage
    Collision coverage helps pay to repair or replace your car if it’s damaged after colliding with another object, like another car, tree or guardrail. This type of coverage is usually required if you lease or finance your car.

If your car is paid off, collision insurance is usually optional. But if you don’t buy it, you could be on the hook for expensive car repairs or — worst case — replacing your vehicle.

The cost of collision coverage varies by state and insurer, and depends on the deductible you choose. The average collision coverage premium nationwide was around $381 in 2019, according to the NAIC.

  1. Comprehensive coverage
    Comprehensive coverage helps pay for damage or loss that results from something other than a collision. This includes theft, vandalism, fire, falling objects, earthquakes, windstorms and hail. It can also protect you against damage from animals like birds or deer.

Like collision coverage, comprehensive insurance is usually optional if you own your vehicle but will likely be required if you lease or finance your car.

The average comprehensive coverage premium in 2019 was about $172, according to the NAIC.

Other types of auto insurance
Depending on your needs and financial situation, you may want to add other optional coverage to your insurance policy.

Rental reimbursement coverage
Rental reimbursement coverage helps you pay for alternative transportation, like a rental car or public transportation, while your vehicle gets repaired. This type of insurance won’t cover your routine maintenance work or a car rental while traveling — it kicks in after your car is damaged in a covered accident.

Rental reimbursement coverage usually comes with a daily and total maximum, such as $20 per day, up to a total of $600.

Towing or emergency road service coverage
This optional add-on may cover the costs commonly associated with roadside breakdowns, such as dead batteries, flat tires, lockouts or towing your vehicle to a repair shop after an accident. This coverage is sometimes automatically included in your policy — make sure to check to avoid buying protection you may already have.

Gap insurance
If you’re at risk of owing more on your car loan than your vehicle is actually worth, you may consider adding gap insurance to your policy. Gap, or guaranteed asset protection, helps cover the difference between what your insurance will pay if your car is totaled — usually the current cash value of your car — and what you owe on your auto loan.

Gap insurance is usually optional for all drivers, but may be required if you lease a car.

What coverage — and how much — should I get?
A number of factors determine the types of car insurance you should carry. These include your state’s minimum requirements, your financial situation, and whether you finance or lease your vehicle.

When considering how much coverage to buy, here are a couple of things to think about.

Coverage limits
When choosing your coverage limits, consider the minimum amount of coverage required by your state. Then, consider your financial situation. The cost of your premium increases as you choose higher coverage limits. But before you buy the minimum amount of coverage to keep your monthly premium cost down, weigh the premium you can afford each month against how much you could realistically pay out of pocket if you were in an accident.

Your deductible
The same goes for deductibles. A higher deductible will generally lower your premium. For example, a policy with a $1,000 deductible will typically cost less than one with a $500 deductible. But if your car needed repairs, would you have $1,000 on hand to cover the deductible?

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Insurance

Best Travel Insurance Companies Of 2022

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Travel Insurance

Travel insurance is a must for any trip, big or small. Because No one likes to think about what could go wrong on their dream vacation. But the truth is, anything can happen.  The good news is, there are plenty of great travel insurance companies out there that can give you the coverage you need. In this article, we will go over the best travel insurance companies of 2022 so that you can choose the right one for your next trip.

Allianz Travel Insurance

Allianz Travel Insurance is one of the best travel insurance companies out there. They offer a variety of plans and coverage options, so you can find the perfect fit for your needs. Their customer service is excellent, and they have a wide network of providers, so you can be sure you’ll be covered no matter where you go.

World Nomads Travel Insurance

There’s no doubt that World Nomads is one of the most popular travel insurance companies out there. And for good reason – they’re widely known for their comprehensive coverage and top-notch customer service.

But what exactly does World Nomads offer? Here’s a quick overview:

– Medical and dental coverage
– Emergency evacuation and repatriation
– Baggage and personal belongings protection
– Trip cancellation and interruption protection
– 24/7 access to a team of medical and security experts

As you can see, World Nomads has you covered when it comes to your health and safety while traveling. But they also offer some other great benefits, like trip cancellation protection in case you have to cancel your trip for any reason.

If you’re looking for comprehensive travel insurance from a company with a great reputation, World Nomads is definitely worth considering.

Seven Corners Insurance

Assuming you are talking about the insurance company:

Seven Corners is a travel insurance and assistance company that offers a variety of plans for travelers. Their plans cover things like trip cancellation and interruption, medical expenses, lost or delayed baggage, and more. They also offer 24/7 assistance services to help you with everything from booking your travel to getting emergency medical assistance while you’re away.

Travelex Insurance Services

If you’re looking for comprehensive travel insurance, Travelex Insurance Services is a great option. They offer a variety of plans to fit your needs and budget, and their customer service is excellent. I’ve had to make a few claims with them over the years, and they’ve always processed them quickly and efficiently.

John Hancock

John Hancock is one of the oldest and most well-known travel insurance companies in the United States. They have been in business since 1862 and offer a variety of different plans to fit the needs of any traveler.

One of the great things about John Hancock is that they offer a variety of different coverage options. You can choose from trip cancellation and interruption insurance, medical expense coverage, baggage insurance, and more. This allows you to tailor your plan to fit your specific needs.

Another thing we like about John Hancock is that they have excellent customer service. Their representatives are always friendly and helpful, and they are available 24/7 to help you with any issues you may have.

If you’re looking for a comprehensive and customizable travel insurance plan, John Hancock is a great option.

AXA Assistance USA

AXA Assistance USA is one of the best travel insurance companies out there. They have a wide variety of plans to choose from, so you can find the perfect one for your needs. And, if you need to make a claim, they are always there to help.

Global Rescue

There are a lot of travel insurance companies out there, and it can be difficult to know which one is the best for you. That’s why we’ve put together a list of the best travel insurance companies, based on our research and customer reviews.

1. Global Rescue

Global Rescue is a leading provider of medical, security, and evacuations services. They offer comprehensive plans that cover you for everything from lost baggage to emergency medical evacuation.

2. World Nomads

World Nomads is a popular choice for travelers, especially those who are looking for comprehensive coverage at an affordable price. Their plans cover you for everything from medical expenses to trip cancellation and interruption.

3. Allianz Global Assistance

Allianz Global Assistance is one of the largest providers of travel insurance in the world. They offer a wide variety of plans, so you can find one that meets your needs and budget. Their coverage includes everything from medical emergencies to trip cancellation and interruption.

Compare prices and coverage

When you’re looking for travel insurance, it’s important to compare prices and coverage from different companies. There are a few things you should keep in mind when you’re comparing prices:

– Make sure you’re comparing apples to apples. That is, make sure the coverage is similar.

– Don’t just focus on the price. Make sure you understand the coverage and what it includes.

– Check the company’s reviews and ratings. See what other customers have said about their experience with the company.

Once you’ve taken all of these factors into consideration, you can start to compare prices and coverage from different travel insurance companies. To help you get started, we’ve compiled a list of some of the best travel insurance companies below.

How to choose the best travel insurance for you

There are many factors to consider when choosing the best travel insurance for you. Here are a few things to keep in mind:

1. What type of coverage do you need?

Make sure the policy covers all the activities you’ll be doing on your trip. For example, if you’re planning on hiking, make sure the policy includes coverage for medical expenses and evacuation in case of an injury.

2. How long will you be traveling?

Some policies have time limits, so make sure the policy covers your entire trip.

3. What is your budget?

Policies can vary widely in price, so it’s important to compare rates from different companies before making a decision.

4. What is the deductible?

This is the amount you would have to pay out-of-pocket before the insurance company would start covering expenses. A higher deductible usually results in a lower premium.

Conclusion

There you have it — the best travel insurance companies of 2022. We hope this list has been helpful in narrowing down your options and helping you choose the right insurer for your needs. Remember, getting travel insurance is one of the most important steps you can take to protect yourself and your trip, so don’t delay!

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What Are The Benefits Of Credit Insurance Coverage?

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If you’ve ever wondered if an invoice is ever going to get paid….you don’t have to ask yourself “what are the benefits of credit insurance coverage?” However, credit insurance is often a worst-case scenario solution and other solutions like training and coaching your finance team to be proactive or aggressive around collecting unpaid accounts receivables, developing standardized best practices, policies and procedures, the use of a respected collections agency etc. are good steps to helping reduce steadily the impact of not to be able to collect on an invoice.

What’s Credit Insurance?

Credit insurance, otherwise called trade credit insurance, is a type of commercial business insurance that ensures you will receive the money you are owed if your customer is not able to pay. Many business owners purchase credit insurance for the reassurance it offers. It is especially important for multinational businesses or individuals with international customers, as with this type of insurance, you won’t need certainly to worry if your foreign customer is not able to pay as a result of blocked funds, political unrest, or another unforeseen circumstance.

FAQ:

So what are the benefits of credit insurance coverage?

The benefits of credit insurance coverage are numerous and we’ve outlined numerous them below:

One of many key great things about credit insurance coverage is that it can cover your Canadian, US and Foreign sales/accounts receivables for non-payment.

Credit insurance coverage covers large, medium and small invoices to whatever the size of your company or that of one’s customer there’s coverage suited for you

Another of the benefits of credit insurance coverage is that it can cover as much as 90% of an invoice which is unpaid.

Credit insurance coverage if for a wide range of reasons that you haven’t received payment including political, bankruptcy etc.

The ability to take back cash flow by utilizing credit insurance coverage to boost your business’s power to secure or increase financing is one of the great things about credit insurance coverage.

Credit insurance coverage can allow you to grow your company by feeling comfortable in promoting your company in new markets globally as you have the certainty of receiving payment.

ALIGNED Insurance brokers can secure credit insurance coverage from many leading providers including EDC, COFACE & Euler so you have choice

What can credit insurance do for your company?

If you’re wondering what credit insurance can do for your company, you’re in the right place.

Credit insurance can protect your company: Credit insurance might help businesses protect their balance sheets, safeguarding against from insolvencies and slow payment to political risk and blocked funds.

Credit insurance can fund your company: This business insurance solution can fund your company by securing an otherwise unprotected asset, resulting in a rise in working capital access on domestic and export A/R.

Credit insurance can grow your company: With credit insurance in your back pocket, you will feel empowered to approach foreign markets the exact same way you do local ones and offer longer payment terms, resulting in growth for the business.

Where can I purchase credit insurance?

You can buy credit insurance from a wide range of insurance companies in Canada. However, the wisest decision you can make is by purchasing credit insurance from an insurance broker. Insurance brokerages like ALIGNED Insurance make searching for credit insurance easier than ever before.

Our expert brokers can answer any questions you might have, obtain and compare quotes on your own behalf, and walk you throughout your policy options. Find comprehensive coverage at a good rate with ALIGNED. Contact us to get going or click here for a free quote.

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The Benefits of Cancel For Any Reason (CFAR) Insurance

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Many people are starting to get the travel bug again and planning vacations that include travel to different states and countries.

However, due to residual effects of the recent pandemic, there are many unexpected situations that can arise, including illness, emergencies, switching jobs and losing vacation time, or simply changing your mind.

But if you have already booked your flight, hotel or other events and need to cancel, and you are unable to secure a refund, or rescheduling is not currently an option, what happens to your hard-earned money?

How will you recoup financial losses associated with travel deposits and other items that aren’t covered by a basic trip insurance policy?

The Solution: Cancel For Any Reason Insurance

The optional Cancel For Any Reason (CFAR) add-on benefit offers coverage for the types of situations described above, particularly as it’s related to reimbursement for refundable trip costs and certain nonrefundable deposits.

CFAR insurance expands the benefits of basic trip cancellation insurance, but these two types of insurance are distinctly different.

Trip cancellation insurance covers specific, unforeseen incidents like injuries or illnesses, natural disasters, lost passports or other covered issues beyond the insured’s control. But only CFAR allows you to cancel your trip plans and recoup prepaid travel expenses that would have otherwise been nonrefundable.

What Does Cancel For Any Reason Cover?

Different policies offer varying levels of coverage. In general, though, Cancel For Any Reason coverage is a supplemental option to add to traditional trip insurance plans, and can help travelers get reimbursed for costs not otherwise covered in their regular cancellation policy. Money spent for things like pre-paid trip deposits, transportation or lodging doesn’t have to be lost just because you have to cancel your trip for a reason not covered by regular trip cancellation insurance.

By adding CFAR insurance to your trip insurance, you’re giving yourself the freedom and peace of mind that comes from knowing you can cancel your plans for any reason (even if you just don’t feel like going) and still recoup financial expenses.

It is important to note that trip insurance is only available to American citizens.

Basic Trip Insurance vs Trip Insurance with CFAR

If you need to cancel your trip, under a basic plan, you’re only covered under a limited number of circumstances whereas a basic insurance plan generally gives you 100% reimbursement if any of these three situations force you to cancel your trip plans. But you won’t be protected for any other reason.

However, when you purchase CFAR with your insurance plan, you can, like the name suggests, cancel for any reason and still receive some level of reimbursement (usually up to 75%).

Under a basic insurance plan, there are significant limits as to what expenses can be reimbursed. When you add CFAR to your insurance plan, you may be reimbursed, depending on the policy, for a wider range of travel-related expenses, like:

  • Transportation
  • Hotel deposits
  • Vacation rental stay
  • Car rental
  • Event tickets
  • Other travel expenses

Beyond the money-saving advantages CFAR trip insurance has over basic plans, there are a few other reasons why adding this benefit is a smart move. Here are some of the top perks:

Peace of mind. Knowing you’re covered if you have to cancel lowers the stress of planning and coordinating your trips, so you can focus on getting the most out of your travels.

Flexibility. The cancellation policy under basic insurance plans doesn’t cover bad timing. With CFAR you can rest easy if the travel dates end up not working out for one of your travel companions, or if one of life’s most important moments, like your newest grandchild arriving ahead of schedule, catches you by surprise.

Safety first. As Covid cases spike in some regions of America, many would-be visitors to the U.S. are understandably apprehensive about traveling. By purchasing CFAR with your trip insurance, you’re covered if your destination state becomes a Covid hot spot or even if you decide you just don’t feel safe traveling there.

Are There Any Restrictions with CFAR?

While CFAR gives travelers many advantages, there are a few restrictions to keep in mind.

If you want the extra financial safeguard this insurance offers, you’ll need to purchase it when you purchase your original policy. Should you need to cancel your trip, you have up to 48 hours ahead of your scheduled departure to do it.

When you purchase CFAR with your plan, you’ll need to make sure all prepaid nonrefundable trip costs are insured and that this amount is added to the total trip cost.

Your reimbursement depends on the amount specified in your policy, generally about 50% to 75% of covered costs. It does not provide a 100 percent refund.

The CFAR benefit is only available for trip insurance plans; it is not an option for travel medical insurance plans. A trip medical insurance plan is recommended.

It is important to note that you cannot choose which leg of the journey you want to insure. You must acquire CFAR insurance coverage for the full cost of all non-refundable prepaid trip arrangements.

For U.S. citizens and residents traveling within the country or overseas, the right travel insurance policy will help you pay for medical care during your trip and protect you against financial losses resulting from canceled or interrupted travel plans.

It’s important to know that all travel insurance plans are not created equal. There’s no one-size-fits-all plan or policy. There are many travel insurance providers offering so many different plans. It can be a daunting task to find the best travel insurance for your needs.

You’ll want to ask about your specific policy as some plans may exclude travel cancellation due to circumstances like pre-existing conditions, pandemics, death of a pet, war, and more.

How much does CFAR cost?

CFAR coverage adds 40% to the cost of your base travel insurance price and travel insurance typically costs between 5%-10% of your total trip cost. Let’s say your total trip cost is $5,000 and the price of your base travel policy is $500, (10% of trip cost), you might pay $200 to add CFAR insurance to your plan. In this case, the total cost to insure your trip with the CFAR add-on would be $700.

CFAR insurance may cost more than standard travel insurance policies but it gives you the flexibility of being able to cancel your trip plans for literally any reason. We’re slowly moving past the pandemic but people are still understandably apprehensive about travel. A lot of travelers these days are booking flights far in advance and CFAR can help them navigate the unexpected.

Is CFAR insurance worth it?

Knowing that any circumstances are covered under CFAR the added cost can be worth it. A cancellation policy fills in the coverage gaps of a basic travel insurance policy.

Although some people only rely on similar coverage that travel credit cards claim to provide, that coverage can often come with a long list of exclusions. Please note that not all cards may provide such protections. Be sure to check with your bank / credit card company to know exactly what is covered and what isn’t.

Is CFAR insurance absolutely needed?

As travel regulations continue to evolve, post-pandemic, travelers are having to face the reality that all travel is uncertain right now. Due to changing restrictions, trips and vacations are more likely to be canceled or rescheduled. To be as covered as possible, travelers should consider purchasing Cancel For Any Reason (CFAR) coverage. It can help recoup the costs that come with canceling your trip when unforeseen circumstances arise such as:

  • Your trip is expensive.
  • Your trip involves multiple destinations.
  • You’re less than 100% certain you’ll be able to go.
  • You’re nervous about what might be happening in your destination country by the time the departure date comes around.
  • COVID-19 in your destination country might require quarantine.
  • Travel bans to and from your country of origin or your destination are more likely.

In these cases and more, spending a little extra for CFAR is a bargain considering that with only a standard travel insurance policy, you could lose thousands of dollars if you have to cancel your trip due to a non-covered reason. Whether to buy CFAR or not is up to you. The main thing is that you have coverage that satisfies your most important needs so that you stay safe physically and financially during your trip.

How to Pick the Right CFAR Travel Insurance Plan?

Determine Eligibility

Some insurance policies are limited to certain states in the U.S. and residential status. For example, the CFAR add-on for the Travel Safe Classic plan is not available to residents of New York.

Review Credit ratings

Look at the Credit Rating provided by agencies such as AM Best, Fitch, and Standard & Poor’s. The rating is given on the assessment of overall financial strength that is the insurer’s ability to meet policyholder obligations. Make sure your base insurance plan has a good rating.

A score of A (excellent) by renowned credit rating agencies such as AM Best is considered a gold standard. All the policies listed on VisitorsCoverage are rated A (excellent).

Assess basic travel insurance coverage

Since CFAR is a supplementary coverage, evaluate the basic coverages of your base plan. For instance, if your base plan covers trip interruption, plans such as Worldwide Trip Protector by Travel Insured and Safe Travels Voyager by Trawick International, offer up to 150% of the trip cost for trip interruption.

Understand the claim process

Look for policies with a straightforward claim process and good customer support. Speak to our Customer Success Team to understand which policy will match your requirements.

Our Top 3 CFAR Insurance Plans

To help you determine which Cancel For Any Reason plan is right for you, we created this visual for a side-by-side review of some of our best CFAR insurance plans for U.S. residents.

Safe Travel Voyager by Trawick International

The Safe Travels Voyager plan is designed for those in search of the highest available benefit limits to protect their trip.

Highlights of Safe Travels Voyager Plan:

  • Comprehensive Coverage
  • Only available to U.S. citizens and U.S. Residents
  • Includes Primary Medical Coverage up to $250,000 per person
  • Covers trip costs up to $100,000 per person

Provides coverage for Pre-Existing Medical conditions on plans purchased prior to or with final trip payment

  • Trip Cancellation: 100% of Trip Cost
  • Trip Interruption: 150% of Trip Cost

Include trip delay of $2,000 for potential accommodations/lodging expenses

COVID-19 Medical Expenses are covered and treated the same as any other sickness

  • Baggage Delay $600 (8 hours or more)
  • Baggage and Personal Effects $2,500
  • 24 Hour AD&D $25,000

The CFAR option covers 75% of the prepaid, non-refundable, forfeited payments paid for your trip if your trip gets canceled for any reason not otherwise covered by the policy. A generous 21 days is available to add the CFAR coverage after your initial trip deposit.

Worldwide Trip Protector Plus by C&F Travel Insured

The Worldwide Trip Protector Plus has the most comprehensive list of covered reasons for canceling or interrupting your trip, including work-related reasons, bankruptcy, unfavorable weather, etc. The maximum trip duration under the plan is 180 days.

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