What Is No Fault Auto Insurance?

Reader’s Question:

A friend told me once that Kentucky is a no fault auto insurance state Can you please tell me what that’s all about? Is that beneficial?

Carrie

Bowling Green, KY

First things first. You know how, generally, insurance companies or you yourself can go after the driver at fault to try to recuperate financial damages? Well, with no-fault car insurance, your insurance company will protect you regardless of whose fault the accident was. Yes, even if it was YOUR fault. Hence the phrase “no fault.” So, why doesn’t everyone take out no fault insurance, you may ask. First, it’s because not all states offer this kind of insurance. Your friend is right. Bowling Green, Kentucky is a no fault area because the state of Kentucky is a no fault state. There are only twelve states that have no fault systems, I think. What’s more, in Kentucky, you can actually choose between the traditional type and the no fault type.

Another reason why some people choose tort insurance (traditional) over no fault is because, as with everything, there are two sides to this kind of insurance. Your insurance company will already indemnify you, so your capacity to sue the other driver for damages is therefore limited. One advantage that I can see about no fault is that of faster payments for injuries and the possibility of getting cheaper premiums because the costs of determining who is at fault is done away with. However, others argue that it promotes reckless driving since people are indemnified even if it was they who caused the accident

Ways To Get Cheaper Car Insurance Rates

Q: I always end up spending a lot of time every month paying my bills, and I’ve noticed how big a burden car insurance is. Can I get cheaper insurance, or is that out of possibility?

A: Since you waste a lot of time paying bills, there is one thing you can do which will make it easier for you to get all of your bills taken care of in a smaller amount of time, and which will also aid you in receiving cheap car insurance. Actually, there are two ways. Way one would be for you to try and pay all of your car insurance at once each time you renew. If you pay monthly, an installment fee is added on to your premiums. By bypassing the installments, you can save around fifty dollars.

Way two would be for you to get your insurance from a company which provides multiple kinds of insurance. If you get your health, life, home owners or renters, and auto insurance all with one company, you can not only combine the premium to make it more manageable, but you can also get a discount for compressing multiple insurance lines into one policy.

1.  Raising your deductible amount is the fastest and easiest way to lower your rates!

2. Ask for discounts – teachers – good grades for students – AARP -Credit union membership and even some banks offer clubs/memberships

3. Improve your credit score – most insurance carriers look at your credit history and adjust rates accordingly.  Pay your bills on time!

Will Getting In An Auto Accident Affect My SR22 Filing?

Q: Will getting into an accident interfere with my SR22 filing?

A: Getting into a car accident will not directly affect your SR22 filing, but it could do so indirectly. Your SR22 filing is only affected by whether or not you are paying for car insurance. If you have car insurance, your SR22 status is fine. If you don’t, then it isn’t, and you can lose your license. What could affect your SR22 filing is your possession of car insurance coverage, which can be affected by an accident.

If you are already a high risk customer–which you probably are, since you are filing SR22 insurance–then getting into an accident which is caused by your own negligent driving is almost certain to cause negative consequences. While some companies may be lenient and simply raise the rates on your premiums as a result of the accident, other companies may choose to cancel your car insurance policy as soon as they find out.

You should remember, though, that your car insurance company may not necessarily find out about your accident. Most companies only check your record once a year or even once every three years, so your accident may have fallen off your record by the time they check. However, if they don’t find out on their own and you don’t tell them, then once they do find out they could still cancel your policy because of misrepresentation.

Kentucky SR22 Auto Insurance – Where To Get It?

Q: I’ve been turned down by three car insurance companies since the judge told me last Wednesday that I would have to get a SR22 policy in order to get my driver’s license back, and I can’t figure out where I’m supposed to go to get insurance. Is there a special place? Yes, I have 2 DUIs on my record.

A: Not really. No ’special’ place for  SR22 insurance exists, although there are some companies which are more likely to insure you than others. Depending on a company’s policy for risk and the amount of trouble you have had in the past in addition to your need for an SR22 to be filed, your level of difficulty in finding a car insurance policy can change.

Mostly, though, it would make sense for you to start your search among companies which are deemed as high risk. Companies like these thrive on people like you, with your fast cars or your SR22 policies. Because you’re more risky, they can charge you more and make more money. However, although they insure most, they don’t insure everybody.

If you aren’t part of most, then you can fall to the final resort of becoming part of the SR22 assigned risk pool, where you’ll be guaranteed to be insured by a random company, although your premiums will be very high.

New Car Insurance – Best Rates in Kentucky?

Q: If I have a new car, what kind of coverage do I need for my auto insurance policy?

A: As the driver of a new car, your responsibility for the well being of your car rises. Your financer, who you are paying for the car, doesn’t want to lose thousands of dollars because you wreck your car and then default on the payments, so a system is set up. If you want your new car, then you need to have collision, comprehensive, and gap insurance on your car insurance policy. If you don’t do this, your financer can take your car back.

You can make this cheaper by taking on even more responsibility, this time with your car insurance company. With the more money your insurance company has to pay when you file a claim, the more you will have to pay on your monthly premiums to make up for that. You can save here by raising your deductibles so that you have to pay out more before your insurance will kick in in the event of an accident.

Another way you can save a little bit of money is by paying your insurance all at once, for the entire six months to a year.

The BEST way to lower your rates is by raising your deductible amount to as high as you feel comfortable.  This will have a drastic impact on your annual premiums.

Student Discounts on Car Insurance For Kentucky College Students?

Q: I was sad when college ended a few months ago, but I also felt a pang to see my good student discount go. I had twenty percent of a discount on my car insurance for that, and once it was gone my premium went up a few hundred dollars in total. Is there something out there which is equal in savings I can replace it with?

A: Maybe there is, but it depends on what you were studying so hard on to get that good student discount for your car insurance policy. If you were working on a degree in the field of science or mathematics, particularly in engineering, then your looking at a savings from some companies simply for that. Although this discount is still not widespread, it is taking hold in the car insurance industry, as many studies have found that people in the above fields are more meticulous and pay attention o detail, and, the kicker, file fewer car insurance claims.

If you don’t have one of these degrees, or even if you do and decided to go into the field of teaching, you can get another discount by joining a teacher’s union. Of course, unions do have membership fees, but it will be like getting free union membership because your discount will be around the amount of the fees, and you probably would have joined the union anyway.

1. Raise your deductible amount to as high as you feel comfortable – this can drastically reduce your annual premiums

2. Join a credit union or bank affiliate that offers insurance discounts – even Sam’s club and Costco offer discounts these days