Health insurance offers a way to reduce such costs to more reasonable, affordable amounts. The way it typically works is that the consumer (you) pays an up front premium to a health insurance company and that payment allows you to share ‘risk’ with lots of other people (enrollees) who are making similar payments. Since most people are healthy most of the time, the premium dollars paid to the insurance company can be used to cover the expenses of the (relatively) small number of enrollees who get sick or are injured. Insurance companies, as you can imagine, have studied risk extensively, and their goal is to collect enough premium to cover medical costs of the enrollees. There are many, many different types of health insurance plans in the United States and many different rules and arrangements regarding care. Following are three important questions you should ask when selecting health insurance: Key question #1. Where can I receive care? One way that health insurance plans control their costs is to influence access to providers. Providers include physicians, hospitals, laboratories, pharmacies, and other entities. Many insurance companies contract with a specified network of providers that has agreed to supply services to plan enrollees at more favorable pricing. If a provider is not in a plan’s network, the insurance company may not pay for the service(s) provided or may pay a smaller portion than it would for in-network care. This means the enrollee who goes outside of the network for care may be required to pay a much higher share of the cost. This is an important concepts to understand, especially if you are not originally from the local Stanford area. If you have a plan through a parent, for example, and that plan’s network is in your home town, you may not be able to get the care you need in the Stanford area, OR you may incur much higher costs to get that care. Key question #2. What does the plan cover? One of the things health care reform has done in the United States (under the Affordable Care Act) is to introduce more standardization to insurance plan benefits. Before such standardization, the benefits offered varied drastically from plan to plan. For example, some plans covered prescriptions, others did not. Now, plans in the United States are required to offer a number of ‘essential health benefits’ which include: · Emergency services · Hospitalization · Laboratory tests · Maternity and newborn care · Mental health and substance-abuse treatment · Outpatient care (doctors and other services you receive outside of a hospital) · Pediatric services, including dental and vision care · Prescription drugs · Preventive services (e.g., some immunizations) and management of chronic diseases · Rehabilitation services For our international population of students who might be considering coverage through a non U.S. based plan, asking the question, ‘what does the plan cover’ is extremely important. Key question #3. How much will it cost? Understanding what insurance coverage costs is actually quite complicated. In our overview, we talked about paying a premium to enroll in a plan. This is an up front cost that is transparent to you (i.e., you know how much you pay). Unfortunately, for most plans, this is not the only cost associated with the care you receive. There is also typically cost when you access care. Such cost is captured as deductibles, coinsurance, and/or copays (see definitions below) and represents the share you pay out of your own pocket when you receive care. As a general rule of thumb, the more you pay in premium up front, the less you will pay when you access care. The less you pay in premium, the more you will pay when you access care. The question for our students is, pay (a larger share) now? Or, pay (a larger share) later? Either way, you will pay the cost for care you receive. We have taken the approach that it is better to pay a larger share in the up front premium to minimize, as much as possible, costs that are incurred at the time of service. The reason for our thinking is that we don’t want any barrier to care, such as a high copay at the time of service, to discourage students from getting care. We want students to access medical care whenever it’s needed. Definitions: Out-of-Pocket Expenses -The terms ‘out-of-pocket cost’ or ‘cost sharing’ refer to the portion of your medical expenses you are responsible for paying when you actually receive health care. The monthly premium you pay for care is separate from these costs. Annual Deductible - The amount you pay each plan year before the insurance company starts paying its share of the costs. If the deductible is $2,000, then you would responsible for paying the first $2,000 in health care you receive each year, after which the insurance company would start paying its share. Copayment (or ‘Copay’) - A fixed, up front amount you pay each time you receive care when that care is subject to a copay. A copay of $30 might be applicable for a doctor visit, after which the insurance company picks up the rest. Plans with higher premiums generally have lower copays, and vice versa. Plans that do not have copays typically use other methods of cost sharing. Coinsurance - A percentage of the cost of your medical care. For an MRI that costs $1,000, you might pay 20 percent ($200). Your insurance company will pay the other 80 percent ($800). Plans with higher premiums typically have less coinsurance. Annual out-of-pocket maximum - The most cost-sharing you will be responsible for in a year. It is the total of your deductible, copays, and coinsurance (but does not include your premiums). Once you hit this limit, the insurance company will pick up 100 percent of your covered costs for the remainder of the plan year. Most enrollees never reach the out-of-pocket limit but it can happen if a lot of costly treatment for a serious accident or illness is needed. Plans with higher premiums generally have lower out-of-pocket limits.
Tuesday, September 15, 2015
How U.S. Health Insurance Works
Health insurance offers a way to reduce such costs to more reasonable, affordable amounts. The way it typically works is that the consumer (you) pays an up front premium to a health insurance company and that payment allows you to share ‘risk’ with lots of other people (enrollees) who are making similar payments. Since most people are healthy most of the time, the premium dollars paid to the insurance company can be used to cover the expenses of the (relatively) small number of enrollees who get sick or are injured. Insurance companies, as you can imagine, have studied risk extensively, and their goal is to collect enough premium to cover medical costs of the enrollees. There are many, many different types of health insurance plans in the United States and many different rules and arrangements regarding care. Following are three important questions you should ask when selecting health insurance: Key question #1. Where can I receive care? One way that health insurance plans control their costs is to influence access to providers. Providers include physicians, hospitals, laboratories, pharmacies, and other entities. Many insurance companies contract with a specified network of providers that has agreed to supply services to plan enrollees at more favorable pricing. If a provider is not in a plan’s network, the insurance company may not pay for the service(s) provided or may pay a smaller portion than it would for in-network care. This means the enrollee who goes outside of the network for care may be required to pay a much higher share of the cost. This is an important concepts to understand, especially if you are not originally from the local Stanford area. If you have a plan through a parent, for example, and that plan’s network is in your home town, you may not be able to get the care you need in the Stanford area, OR you may incur much higher costs to get that care. Key question #2. What does the plan cover? One of the things health care reform has done in the United States (under the Affordable Care Act) is to introduce more standardization to insurance plan benefits. Before such standardization, the benefits offered varied drastically from plan to plan. For example, some plans covered prescriptions, others did not. Now, plans in the United States are required to offer a number of ‘essential health benefits’ which include: · Emergency services · Hospitalization · Laboratory tests · Maternity and newborn care · Mental health and substance-abuse treatment · Outpatient care (doctors and other services you receive outside of a hospital) · Pediatric services, including dental and vision care · Prescription drugs · Preventive services (e.g., some immunizations) and management of chronic diseases · Rehabilitation services For our international population of students who might be considering coverage through a non U.S. based plan, asking the question, ‘what does the plan cover’ is extremely important. Key question #3. How much will it cost? Understanding what insurance coverage costs is actually quite complicated. In our overview, we talked about paying a premium to enroll in a plan. This is an up front cost that is transparent to you (i.e., you know how much you pay). Unfortunately, for most plans, this is not the only cost associated with the care you receive. There is also typically cost when you access care. Such cost is captured as deductibles, coinsurance, and/or copays (see definitions below) and represents the share you pay out of your own pocket when you receive care. As a general rule of thumb, the more you pay in premium up front, the less you will pay when you access care. The less you pay in premium, the more you will pay when you access care. The question for our students is, pay (a larger share) now? Or, pay (a larger share) later? Either way, you will pay the cost for care you receive. We have taken the approach that it is better to pay a larger share in the up front premium to minimize, as much as possible, costs that are incurred at the time of service. The reason for our thinking is that we don’t want any barrier to care, such as a high copay at the time of service, to discourage students from getting care. We want students to access medical care whenever it’s needed. Definitions: Out-of-Pocket Expenses -The terms ‘out-of-pocket cost’ or ‘cost sharing’ refer to the portion of your medical expenses you are responsible for paying when you actually receive health care. The monthly premium you pay for care is separate from these costs. Annual Deductible - The amount you pay each plan year before the insurance company starts paying its share of the costs. If the deductible is $2,000, then you would responsible for paying the first $2,000 in health care you receive each year, after which the insurance company would start paying its share. Copayment (or ‘Copay’) - A fixed, up front amount you pay each time you receive care when that care is subject to a copay. A copay of $30 might be applicable for a doctor visit, after which the insurance company picks up the rest. Plans with higher premiums generally have lower copays, and vice versa. Plans that do not have copays typically use other methods of cost sharing. Coinsurance - A percentage of the cost of your medical care. For an MRI that costs $1,000, you might pay 20 percent ($200). Your insurance company will pay the other 80 percent ($800). Plans with higher premiums typically have less coinsurance. Annual out-of-pocket maximum - The most cost-sharing you will be responsible for in a year. It is the total of your deductible, copays, and coinsurance (but does not include your premiums). Once you hit this limit, the insurance company will pick up 100 percent of your covered costs for the remainder of the plan year. Most enrollees never reach the out-of-pocket limit but it can happen if a lot of costly treatment for a serious accident or illness is needed. Plans with higher premiums generally have lower out-of-pocket limits.
Work and travel insurance
Why is travel health insurance so important? Special coverage for long-term stays abroad (this is NOT included in your travel insurance for holidays). Coverage of medical expenes is required during travel & work (all working holiday visa, volunteer programs and internships), CareMed insurance will be accepted for your visa application. You need immediate medical help abroad? Our multilingual 24-hour emergency service is pleased to assist. What to consider when checking travel insurance options Compare insurance plans: Travel insurance should be adapted to the needs of long-term travelers and particularly work & travel participants. The price should not be crucial. Insurance benefits and terms and conditions of your travel health insurance are relevant, too. Insurance coverage: All CareMed policies offer unlimited medical coverage. Benefits: Which costs will be covered? Is medical repatriation included in travel health insurance? Terms and conditions: Read them carefully, especially exclusions and limitations. Why has CareMed insurance the applicable coverage? Support & service: You may contact us with questions concerning work and travel insurance any time. We are not only available online, we will also help you personally. Flexibility: You may put together your own insurance plan (e.g. deductible as well as coverage options). Online application on short notice: Insurance confirmation is available immediately after application. Multi-lingual documents: CareMed provides insurance documents in various languages. Personal login: You have access to important information 24/7. Online access is a great advantage while traveling. Experience: CareMed insures travelers for more than 25 years. Quality: CareMed has been shortlisted Star Award Insurance Provider 2014, Study Travel Magazine
Car-Rental Insurance and the Collision
It’s (usually) up to you, however, to decide how to cover the risk of damage to or theft of the car itself. You have three main options, all described below: buying a “collision damage waiver” (CDW) through the car-rental company (easiest but most expensive), using your credit card’s coverage (cheapest), or getting collision insurance as part of a larger travel-insurance policy. If you’re renting in either Ireland or Italy you’ll have little choice but to buy the company’s CDW. If you need a car for at least three weeks, you’re probably better off leasing, which includes zero-deductible collision and theft insurance (and is tax-free to boot). Note that theft insurance covers just the loss of the car itself, not anything stolen from inside it (see my tips on protecting your car from thieves). Car-Rental Company CDW The simplest solution is to buy a CDW supplement from the car-rental company (it’s the main extra included in the “inclusive” rates you’ll see in quoted prices). This coverage technically isn’t insurance; rather, it’s a waiver: The car-rental company waives its right to collect a high deductible from you in the event the car is damaged. Note that this “waiver” doesn’t actually eliminate the deductible, but just reduces it. CDW covers most of the car if you’re in a collision, but usually excludes the undercarriage, roof, tires, windshield, windows, interior, and side mirrors. CDW generally costs $10–30 a day (figure roughly 30 percent extra). Sometimes the CDW charge itself is a little less when combined with theft/loss insurance as part of an “inclusive” rental rate — it’s often cheaper to pay for this kind of coverage when you book than when you pick up the car. When purchasing CDW, the reduced deductibles can still be substantial, with most hovering at about $1,000–1,500 (or more, depending on the car type). Most rental companies also offer a second tier of coverage, called “super CDW” or “zero-deductible coverage” to buy down the deductible to zero or near zero (if you didn’t opt for this when booking from home, expect to hear a sales pitch from the counter agent). This is pricey — figure about an additional $10–30 per day — but, for some travelers, it’s worth the peace of mind. When comparing rental options online, beware that some European rental agencies quote “basic” rates that include CDW/theft coverage. (In this case, it’s not an optional extra, so you can’t decline it.) If these CDW-inclusive rates seem too good to be true, they probably are: The unwaived deductible is almost certainly especially high (expect $2,000–3,000)...so you’ll have to spend extra to buy the “super CDW” anyway to get the deductible down to a reasonable level. Given these costs, the alternatives to paying for the rental company’s CDW are worth considering carefully: credit-card coverage or collision coverage through your travel-insurance provider. Credit-Card Coverage Car-company CDW surcharges can seem like a racket when you consider that most credit cards already include collision coverage. By paying with the right credit card, you get zero-deductible collision coverage (comparable to “super” CDW)...likely for free. In other words, if your car is damaged or stolen, your credit card will cover whatever costs you’re liable for. The only major downside: If you do end up in an accident, dealing with credit-card coverage can be more of a hassle than what you’d encounter with the car-company CDW. But if a potential headache seems like a worthwhile trade-off for certain — and significant — cost savings, look into this option. To make this work, first double-check that your credit card does indeed offer this coverage. Remember that restrictions apply and coverage varies between issuers: Get a complete description of the coverage offered by your credit-card company. Ask in which countries it is applicable, which parts of the car (if any) are excluded, the types of vehicles that are eligible, whether it covers theft/loss, the maximum reimbursement allowed (if it’s less than the price of the car, the rental company may require you to buy their CDW), and the maximum number of rental days covered (if your rental period exceeds that number, your card won’t cover any of the rental). Have them explain the worst-case scenario to you. It can be smart to ask for a “Letter of Coverage” — take a hard copy of it with you to the rental counter in Europe. Once you’ve confirmed your credit card’s coverage, be sure to decline the CDW offered by your car-rental company. If you accept any coverage offered by the rental agency, you automatically forego your credit-card coverage. (In other words, if you buy CDW that comes with a $1,000 deductible, your credit card will not cover that deductible.) This may also be the case if you book and prepay for a rental that already includes CDW and/or theft coverage — don’t sign any rental contract until you’re sure that by doing so you’re not accidentally accepting the rental company’s coverage. A credit card’s collision coverage applies even if the damage happens while the car’s being driven by someone else, as long as that other driver, and the cardholder, are both listed as drivers on the rental contract. Remember to use that same card not only to reserve the car, but also to pay for the rental itself, as well as any other related fees you’re charged, whether when booking at home, or when picking up or dropping off the car in Europe — switching cards can invalidate the coverage. If you get in an accident, the rental company will charge your credit card for the value of the damage (up to the deductible amount) or, if the vehicle is stolen, the value of the deductible associated with theft. It’s then up to you to seek reimbursement for these charges from your credit-card company when you get home. You’ll need to submit the police report and the car-rental company’s accident report. (When deciding between rental companies, consider that American-based rental companies can be easier to work with if you have a claim to resolve.) Be warned that, as far as some rental companies are concerned, by declining their CDW offer, you’re technically liable for the full deductible (which can equal the cost of the car). Because of this, the car-rental company may put a hold on your credit card for the full value of the car. This is bad news if your credit limit is low — particularly if you plan on using that card for other purchases during your trip. (Consider bringing two credit cards — one for the rental car, the other for everything else.) If you don’t have enough credit on your card to cover the car’s value, the rental company may require you to purchase their CDW. Since most credit cards don’t offer collision insurance to their European cardholders, counter agents — especially those unaccustomed to American clients — may be skeptical that declining their CDW is a prudent move (all the more reason to have hard-copy proof of your credit-card coverage on hand). Don’t be surprised if you hear a warning about how credit cards provide only “secondary” coverage — that’s moot as long as you’ve declined the rental company’s coverage and your own personal car insurance doesn’t apply to the country you’re in. By clearly understanding the coverage from your credit-card company, you should be set to ward off a hard sale on the rental-company CDW. Collision Coverage Through Your Travel-Insurance Provider If you’re already purchasing a travel-insurance policy for your trip, adding collision coverage is an option. Travel Guard, for example, sells affordable renter’s collision insurance as an add-on to its other policies. It’s valid everywhere in Europe except the Republic of Ireland, and some Italian car-rental companies refuse to honor it, as it doesn’t cover you in case of theft. If your car-rental company doesn’t accept this coverage, and you have to buy other coverage to replace it, Travel Guard will refund your money. If you do go with an insurer’s comprehensive travel coverage, be sure to add the insurance company’s name to your rental agreement when you pick up the car.
How the man uses his dick to catch fishes in lake
Visitors Insurance Plans
Visitor insurance for USA visitors and international travelers provides health, accidents & travel insurance coverage for USA;
Most suitable and best visitor insurance, for USA visiting parents, relatives & business travelers to USA on visitor / business B1 B2 Visa.
Below are the top-rated health insurance plans for visitors coming to the USA, from the leading US insurance companies, with excellent ratings, that provide Best Visitors Insurance for USA Visitors at lowest prices.
Sunday, September 13, 2015
Visitors Insurance Plans
Visitors Insurance Plans
Visitor insurance for USA visitors and international travelers provides health, accidents & travel insurance coverage for USA;
Most suitable and best visitor insurance, for USA visiting parents, relatives & business travelers to USA on visitor / business B1 B2 Visa.
Below are the top-rated health insurance plans for visitors coming to the USA, from the leading US insurance companies, with excellent ratings, that provide Best Visitors Insurance for USA Visitors at lowest prices.
Friday, September 11, 2015
How To Buy Car Insurance (Video inside)
Click bellow to watch video
Car insurance is one of the necessary evils of modern life. You pay a substantial amount of money each month to the insurance company, and if you are like most people, you have not had an accident or made a claim in years. Yet when you do suddenly find yourself involved in a collision, the insurance premiums you've been forking over all these years will finally pay off. The advent of the Internet has raised the level of competition between insurance companies. Because you can now sit at home in your bathrobe and compare rates and coverage between companies, they are under more pressure to offer competitive deals. So why not leverage the Internet's potential to help you save time, save money, and find the best auto insurance coverage? First, let's be clear about the fact that auto insurance is required by law in most states―it's not optional. If you drive a car, you must have auto insurance. So you need to find out what the law requires in your jurisdiction when it comes to how much auto insurance coverage you need to maintain. Print out your state's requirements, and save that information for the next step in the process. What Can Influence Your Rates Because insurance prices are all based on statistics, the prices each of us pays varies wildly. Things like the driver's age, years of driving experience, what neighborhood the car is usually parked in overnight, the make and model of the car, what kind of safety features the car has, and whether or not you have antitheft devices installed―all of these variables will factor into the price you'll pay for the particular level of coverage you choose. Before you get too far into shopping for insurance, you might want to order a copy of your driving record. In much the same way that your credit rating determines what kind of interest rate you'll get when you are applying for financing, your driving record will influence your insurance rate. When you get your driving record, take a look at it to make sure that it is current and accurate. You would not want an error on your driving record to keep you from getting the best rate possible. What Coverage Do You Need? Your state sets forth the minimum liability coverage you must maintain, as mentioned above. But these are just the legal minimums and might not give you the coverage you need. You'll have to decide what you want to buy beyond these minimums. Keep in mind that you are looking to find the balance between having adequate coverage and overpaying. According to Consumer Reports, a general guideline for adequate bodily injury liability limits is $100,000 per person and $300,000 per accident, plus $100,000 for property damage. These amounts are what your insurer will pay to someone you are in an accident with. For uninsured motorist coverage, you should get the same amount as for bodily injury liability, as this covers your medical costs when someone who is not insured hits you. Other Types of Coverage You can always supplement your policy with specific protections (for a higher premium, of course). For example, many motorists get comprehensive and collision coverage. Comprehensive pays out when your car is damaged or lost due to causes other than an accident, such as vandalism, theft, or weather. Collision coverage will pay to repair your own car if you hit something. These options typically come with your choice of deductible, usually $250 to $1,000. This is the amount you pay out of pocket before your insurance kicks in; the higher the deductible, the lower the premium you'll pay for this type of coverage. Additional options include rental reimbursement coverage, which pays for a rental car while your car is in the shop being repaired. Roadside assistance coverage will pay to have your vehicle towed. Keep in mind that if you already have an auto club membership, you do not need this additional coverage. Get the Best Rate The National Association of Insurance Commissioners (NAIC) recommends that you ask your potential insurer about the following discounts: Good driving record: Many auto insurers offer discounts to drivers who have not made a claim, haven't been in an accident, or haven't received a traffic ticket in three years. Good grades: Young drivers can get discounts for maintaining a B average or better in school. Driver's education: Some insurance companies offer a discount for drivers who complete a driver's education or driver's safety course. Multiple policies: Some insurance companies offer discounts if you have two or more policies with them. Safety equipment: Equipment such as antilock brakes and antitheft devices can get you a discount. Longtime policy holder: If you have kept your policy with an insurer for several years, ask about a discounted premium. Higher deductibles: A higher deductible usually means lower premiums. Gather Quotes Once you know what kind of coverage your state requires, you will need the following information in front of you in order to get an accurate quote for auto insurance: The age and sex of the driver(s), the number of drivers in your household, and their driver's license numbers. A description of your car: the make, model, year, and vehicle identification number (VIN). The type of coverage and limits you want. Where you park your car overnight. Get free auto insurance quotes and compare rates by using DMV.org'S Car Insurance Center. Check References Now that you have a few comparable quotes and you know which company offers the lowest price for the policy you want, you still need to check out the company itself to find out whether it's reliable. You can check with your state's department of insurance, which should allow you to compare premiums for insurance companies in your state. You can also check on the financial stability of a company and look up the number of consumer complaints it has accumulated. Take a look at Weiss Ratings to get an independent rating of the companies you are considering. J.D. Power and Associates also offers useful consumer reviews of auto insurance companies. Review Your Policy Before you sign, be sure to carefully review your new policy to make sure it includes all the coverage you want. Your policy will need to comply with your state's legal requirements as well as any additional requirements of the company that finances your auto loan. Proof of Insurance Most states that require you to have auto insurance also require that you always have proof of your insurance policy in your car or in your wallet at all times. If you are stopped by the police and you are not able to show proof of auto insurance coverage, you could incur serious fines. Most insurers will issue a handy insurance ID card―one for each vehicle you have insured. Keep this card in your car's glove box along with the registration, and you'll never have to worry about forgetting it. You might even need to provide proof of insurance when you register your car; you can use the insurance ID card for this. For specific insurance coverage requirements in your state, visit our Insurance Center or choose your state below:
Car insurance
e.g. Alabama, Iowa, Mississippi, New Hampshire, Pennsylvania, etc. These states have ‘financial responsibility’
laws, requiring you to post a bond, cash deposit or approved self-insurance with the state to cover damages if you’re involved in an accident.
Motorists in states where car insurance is compulsory must provide proof of insurance at the time of vehicle registration and may be required to carry it in their vehicles at all times. Buying car insurance is more complicated in the US than in most other countries and may include the following types of cover: Liability Insurance Liability insurance includes bodily injury liability, i.e. injuries you cause to someone else, and property damage liability, which is damage caused to someone else’s property, including other vehicles. In most states, liability motor insurance is compulsory, although it doesn’t necessarily include unlimited liability. Most states have laws setting minimum levels for liability insurance, but these are usually woefully inadequate. ‘Responsibility’ limits are set by each state for death or injury to one person, death or injury to more than one person, and property damage in excess of a certain amount. If your liability after an accident exceeds your amount of insurance and you have personal assets, these are used to pay damages, if necessary, until you’re bankrupt. Lawsuits often run into millions of dollars and litigation lawyers are among the richest legal vultures. Liability limits can usually be raised significantly for a modest extra premium. To protect yourself against astronomical damages, you can also take out a personal liability umbrella policy which increases your liability limits to a level that covers almost any event. No-fault Insurance Around 25 states and the District of Columbia have some form of Personal Injury Protection (PIP) or no-fault insurance law. This means that if you’re involved in an accident, you can claim (up to certain limits) from your own insurance company for personal injury sustained in an accident, rather than go to court and try to prove that the other party was at fault. In states without a no-fault law, the victim files a claim against the other driver, irrespective of whether or not the driver is insured, and is paid only if it can be proved that the other driver was responsible for the accident. If you weren’t to blame and can prove it through witnesses or a police prosecution of the other driver, make sure your insurance company is informed, or you may lose your good driver (no-claims) discount. Where applicable, PIP insurance is usually compulsory and covers bodily injury only and not vehicle damage. Those insured under PIP insurance receive prompt payment from their own insurance company, but their right to sue for general damages is usually restricted. Motorists insured in states with liability laws should ensure that their insurance covers them when travelling in states with no-fault laws. Most insurance companies automatically extend their policies to cover states with no-fault laws. PIP cover may duplicate insurance provided by health or disability insurance policies. PIP insurance provides benefits for medical and hospital costs (the level depends on your policy), plus lost wages or income continuation, replacement/essential services, survivors’ loss/death benefit, and funeral expenses. Lost wages and replacement services are payable up to a maximum amount for maximum periods. PIP Medical Expenses Insurance It’s possible to buy Personal Injury Protection cover for medical expenses only. PIP medical expenses pays the medical expenses of anyone injured when travelling in your car, irrespective of fault. Depending on your policy, it may also pay your medical bills when you or your family members are travelling in someone else’s car, or if you’re hit by a car while walking. Unlike other health policies, the medical payments part of a vehicle policy pays for all medical expenses incurred, without excesses (deductibles) or co-payments (called ‘first dollar coverage’). If you have comprehensive health insurance, you may not require this protection, although it also covers anyone travelling in your car. In some states, you can choose your PIP health insurance provider, who can be someone other than your car insurance company, e.g. your employer’s health insurance company. Catastrophic Medical Expenses Insurance Some insurance companies offer catastrophic medical expenses cover, protecting you against abnormally high medical bills. Whether or not you have this type of insurance depends on the level of your health insurance. If it has limitations, you’re advised to have catastrophic medical expenses cover. Uninsured Motorist Insurance To protect yourself against accidents with uninsured motorists and hit-and-run accidents (whether driving or walking), you should have uninsured motorist insurance. Uninsured motorist laws have been enacted in many states, requiring insurance companies to include in their basic policy cover against damage caused by motorists who aren’t insured. Uninsured motorist cover is usually equal to the minimum financial responsibility limits set by a state and is compulsory in some states. If you have collision insurance, you usually don’t need uninsured motorist insurance. In many states, the penalties for driving without insurance are derisory, and there may be no penalty at all unless you have an accident. However, when the paltry financial penalties are compared with the often high insurance premiums, it’s hardly surprising that there are so many uninsured motorists. If you have an accident involving another vehicle, the chances of the driver being uninsured are extremely high in some cities, so it’s important to calculate the financial consequences of an accident involving an uninsured motorist. Under-insured Motorist Insurance This is similar to uninsured motorist cover and covers you when another motorist is responsible, but has insufficient insurance to cover the injuries or damage to property (although, if he has sufficient assets, you can still sue him). Collision Insurance Collision cover is for damage caused by you to your own vehicle, irrespective of who was responsible for the damage. Collision cover usually has an excess (deductible); the higher the excess, the lower your premium. Whether it’s necessary (or wise) to have collision cover usually depends on the value of your car. Collision and comprehensive cover are usually required by a car loan or a leasing company. With collision insurance, you usually don’t need uninsured motorist insurance. Comprehensive Insurance Comprehensive cover is for loss of the vehicle resulting from fire, theft, vandalism, collisions with animals, storms, floods, riots, explosions, earthquakes, falling objects, plus accidental glass breakage, e.g. from a stone thrown up by another vehicle. It doesn’t cover you against accidents involving other vehicles or objects, for which you require collision cover. Comprehensive cover usually has a lower excess than collision cover. Miscellaneous Extra Insurance This insures you against a wide range of costs, including a rental car when your car is being repaired, and towing and labour in the event of an accident or breakdown (also provided by automobile clubs). If you frequently use rented cars, you may be interested in a policy that includes collision damage waiver (CDW) for rented cars, which may also be provided free by a credit card. Premiums Insurance premiums are high, particularly for men under 27 and those who live in inner cities, where driving conditions are more hazardous and where car theft is endemic. Many factors influence the cost of car insurance, including: The make and type of car (and how expensive it is to repair); The type of insurance cover required; The age and value of the car; Your age, sex (some companies offer a discount to women drivers) and occupation; What you use your car for (e.g. business or pleasure); Your driving experience and driving record; Your accident record and no-claims bonus (good-driver discount); Who will drive the car; Your health (you may be required to pay an excess if you suffer from epilepsy or diabetes); Where you live and whether your car is stored in a locked garage overnight; The number of miles you do each year; Any extras required, such as a rented car when your car’s being repaired after an accident. Shop around a number of insurance companies, as rates can vary by up to 400 per cent. Among the largest US car insurers are State Farm, Allstate, Farmers and Nationwide. State Farm is a mutual insurance company and customers sometimes receive a refund from excess profits. You should ask your family, friends and colleagues for their advice regarding car insurance, although you should also make your own comparisons. Some ways to reduce your insurance are to: Make comparisons - shop ’til you drop! Insure your car with your household insurance company, which may yield a discount of 5 to 10 per cent. Take advantage of insurer’s discounts, usually 5 or 10 per cent of the premium. Most insurance companies offer discounts for cars fitted with air bags, automatic seat belts, anti-theft devices or anti-lock brakes. Many also provide low-mileage discounts and discounts for more than one car, no claims (good-driver discounts, e.g. if you make no insurance claims in three years), drivers aged over 50 or 55, driver training courses (e.g. defensive-driving), and even good student grades (are diligent students safer drivers?). Drivers aged over 65 can complete a ‘mature driving course’ in some states, guaranteeing them a three-year discount on their insurance premiums. Don’t get uninsured motorist cover unless required by state law. If you’re hit or injured by an uninsured motorist, repair and medical bills are covered by your collision insurance (provided you have it!), PIP cover and other medical insurance. Drop your reimbursement for a rented car. If you’re a two-car (or more) family, you may be able to do without a rented car while one car is being serviced or repaired. Insurance companies have limits on what they pay for a rented car. If you have an employee hospitalisation plan, you could drop your car insurance medical payments, which duplicates medical insurance you already have. Drop the emergency towing service, which you probably don’t need unless you have an old car susceptible to breakdowns. Insurers often limit what they provide for a tow, which is too little anyway. Join the AAA or another automobile club providing an emergency towing service. If your car isn’t a status symbol, consider buying a ‘low profile’ car with a low insurance rating and, if you’re considering a house move, choose a low insurance area. One thing not to do in order to save money on car insurance is reduce your liability limits! There’s no correlation between the premium you pay and the quality of service you receive, so paying a high premium doesn’t guarantee the best service. Some 25 states publish information comparing the insurance rates of different companies. For information contact your state insurance regulator. Premiums can be increased at renewal time, which is likely if you’ve made any claims in that period. Many insurance companies allow premiums to be paid in instalments, e.g. quarterly or monthly. When completing your insurance proposal form, make sure that you state any previous accidents or driving offences; otherwise your insurer can refuse to pay out in the event of a claim. Drivers who have been banned for drunk or dangerous driving must usually pay at least double the standard premium for three years (even penalty points on your licence increases your premium). Your insurance company may cancel your policy if you’re found guilty of drunk driving, speeding or recklessness resulting in injury or death. For general information on car insurance contact the Insurance Information Institute, 110 William Street, Floor 24, New York, NY 10038 (212-346-5500
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