Do You Know Your Auto Insurance Policy?
A Insurance Article Contributed by Deepak Cutting
Do You Know Your Auto Insurance Policy?
Most people do not understand all implications of their Auto Insurance Policy till something happens. Your automobile is one of your most important assets. Protecting that asset, as also protecting yourself and others from the harm caused by a mishap must be a priority.
As brought out in a recently conducted poll, 1/3 of the drivers have not read the insurance policy they possess. Half of the people understood only three basic terms; claim, premium and deductibles. Most people will be surprised when told that they were 'at fault' or 'partially at fault', in the event of an accident. How can I be at fault? I have a no fault auto insurance cover", they believe.
It is important that they realize that their 'no fault' cover is to compensate them and others for the bodily injuries that may have been caused in an automobile accident. The damage caused to property in an accident will be assigned to the drivers involved. The blame may not be put on one driver or shared equally among the drivers involved. Rules require that drivers are apportioned blame as a percentage, in certain circumstances.
It is important that policyholders understand their rights and obligations arising from the auto insurance policy. In case you do not fully understand any of that, please read your policy document and ask questions. Call up your broker and get him to answer your queries.
Optional Benefits in Auto Insurance;
A variety of optional benefits are available in auto insurance policies. These benefits are available to you, the policyholder and may not cease should your vehicle change hands.
* Income Support:
The basic auto insurance policy provides up to $400 per week (not available in the first 7 days) foe an injury caused by an automobile accident that prevented you from work at your usual occupation, being up to 80% of usual income.
* Death and funeral benefits:
The basic auto insurance policy provides $25,000 in compensation in case of death to a spouse and $10,000 for every surviving dependant, which can be increased to $50,000 for the surviving spouse and $20,000 for each dependant.
Funeral expenses of $6,000 are available, which can be increased up to $8,000.
* Medical, Rehabilitation & Attendant care benefits:
The basic auto insurance policy can compensate up to $1,000,000 for catastrophic injuries (e.g. serious head injury) and up to $100,000 for other medical and rehabilitation expenses. In addition, the insurance policy will also pay up to $1,000,000 in case of catastrophic injuries (maximum 6000/month) and $72,000 for other injuries, on account of attendant care. This benefit can be enhanced up to $ 1,000,000.
* Care-giver and dependant care benefits:
The basic policy provides for benefits for persons providing care who are unpaid, e.g. stay at home spouse, that are engaged in looking after the injured after an accident. The upper limit for such reimbursement is $250 per week for the first and up to $50 p/w for subsequent care-givers. In addition, this option provides for payment to care-givers that are employed to replace the care provided by the unpaid care-giver. This benefit is available up to $ 250 p/w plus $50 p/w for every additional care-giver.
* Indexation:
There is provision to link these payments to the cost of living index.
Liability When Auto Insurance Cover is Insufficient;:
The 'not at fault' victims are at liberty to sue the 'at fault' party, for medical benefits, loss of wages, pain and suffering etc. In addition, your employer may have made a provision in this regard.
