21.Gap insurance: This optional policy insures driver of a new car for difference between car's financed value and its fair market value. Should car be "totaled" during first few years after purchase, owner will be covered for amount still owed on car, rather than it's market value (which is often much lower). Because it covers only difference in value, this is a relatively inexpensive policy.

22.No-fault insurance: A no-fault policy usually will not require that someone be assigned blame in order for policyholder to receive his/her money. In no-fault states, insurance companies are required to have this type of policy. “No- fault insurance" is a general term that is used to describe any auto insurance system that both requires drivers to carry insurance for their own protection, and that places limitations on their ability to sue other drivers for damages. In an accident, under no fault laws, your auto insurance company will pay for your medical damages (up to your policy limits), regardless of who was at fault for accident. Any other drivers involved will be covered by their auto insurance policies. Under a pure no fault system, drivers would be completely covered by their own policy, and would be barred from ever suing another driver for damages. However, no state uses a pure system. Instead, all "no fault" states actually use parts of both no fault system and standard liability system (under which you're financially responsible for cost of damages you cause). States do this by permitting lawsuits in certain cases.

23.Rental car reimbursement coverage: It's an optional policy endorsement that helps pay cost of renting a car while your auto is being repaired for a covered event. (This means you usually need to carry collision and comprehensive to qualify.) Your premium is decided by amount of reimbursement you want per day.

24.Emergency roadside assistance insurance: It's an optional policy that covers cost of towing or immediate roadside repair (like fixing a flat or jump-starting battery). It does not cover costs of any repair done at a garage or service station, however. Consider AAA-type coverage instead.

25.Towing: This is an inexpensive add-on that provides towing and limited storage after an accident. No need if you have AAA-type coverage.

26.SR-22 filing: A document that shows proof of financial responsibility in case of a traffic violation. The SR-22 is actually a form that high-risk drivers may be required to file with state before they purchase car insurance. It requires provider to notify state should policy be terminated or canceled. DUIs, multiple speeding tickets, and driving without insurance or valid license are all reasons a SR-22 may need to be filed.The requirement usually lasts for three years after initial event.

27.Umbrella policy: It is additional liability coverage that goes "over" your auto liability limits, homeowner’s liability, boat liability, etc. Carrying an umbrella policy is a good idea for drivers with considerable assets to protect. You usually have to purchase maximum auto insurance coverage (or near to it) before you can buy an umbrella policy.

On to part 3

The same type of carrier is also one that will likely seek to limit your recovery on UIM by requesting arbitration more frequently than other carriers. These claims involve all of damages you would expect to recover from tortfeasor, including general damages . Thus, there can be quite a bit of money at stake, since general damages are usually a multiple of cost of your medical care.

In evaluating UIM coverage, see if you can find out what percentage of claims are settled, mediated, arbitrated, or tried to a jury (this jury trial clause is inserted by only a few companies).Does your Insurance Commissioner have any idea how often a carrier forces its own insureds into arbitration, rather than agree to more desirable non-binding mediation forum? Arbitration and mediation usually involve attorneys who are knowledgeable in personal injury matters as mediators or arbitration panel members.

Or, worse, do they force their own UIM claimants to go into court and present their claim to a jury?

Do you have right to choose arbitration in UIM? Is your company is deceiving you with a clause that removes your rights to arbitration. Here is a Specific Question for Sales Representative Regarding Forcing You to a Jury Trial

Please check your policy and ask sales representative to be sure that your carrier does not reserve right to a jury trial in its UIM disputes.

The tricky little phrase used in policies issued in recent years was to effect that “disputes hereunder will be resolved by arbitration, unless either of parties elects to have dispute resolved as in other civil matters” . You probably would not see anything wrong with that phrase, but it is deceptive in its apparent innocence. It is a powerful tool and will in turn, only benefit insurer.

That little phrase was intended to give insurance company right to a jury trial in resolving your dispute with your own company.If you and they disagree, you will not have right to an arbitration; they will just tell you to go file a court action. And insurer will always ask for a jury trial.

Why don’t you want a jury trial? First, you will have to pay to use court system. You must file lawsuit, and you will have to serve it (although they will likely accept mail service). Second, there is likely a much longer wait (currently one and a half to two years is common) for you in obtaining a jury trial date than there would be to put together an arbitration panel of attorneys. Who wants delay? The insurance industry makes a lot of money on investments, whereas you will always need cash to make up for some of problems caused by accident.

Third, it is tremendously more expensive than any other forum for resolution in your time and your costs. In arbitration, you can submit medical records to be read by arbitration panel, and perhaps call just one of your doctors. You will pay for any time your doctor has to spend in preparation and testimony, so you will want less formal proceeding (such as arbitration) because her fees will be a fraction of those at trial.

At a jury trial, you must present some live testimony from your doctors. (Although some records can be admitted without doctor present, attorneys usually want doctor present to speak to jury, whereas at UIM arbitration, attorney knows that panel of trail attorneys will have some familiarity with medical specialty, medical terms, prognosis, etc., and she therefore can simply admit records and argue from them.) This testimony is expensive, because you will likely pay their full time away from office, including courtroom waiting time, regardless of results). It is a delay of a year or two, depending upon your jurisdiction, and it takes a much greater effort to succeed with higher risks than at arbitration. Therefore, company knows that you are more likely to compromise and accept a lower award than if you went to arbitration. So please consider this an important issue in selecting your company.

Think Preventive—Protect Yourself, Your Family, and Your Passengers

We’ve seen far too many cases where insured, in an effort to save a dollar up front, has left him or his family exposed. Insurance is a good investment; it is necessary; and, it should be purchased in anticipation of traumatic events.How can you foresee only limited consequences of an accident? You can’t.

Here are two examples of places where we have seen insureds deprive themselves of necessary coverage. The first and most obvious is PIP/MedPay .Insured people who have a good medical plan, an HMO, or who are covered through military, often think they will rely on their medical plan and decline to take PIP/MedPay. This is a serious mistake.

Often, medical plans (or military) do not afford anything more than long gray line of institutionalized medicine, where treatments and referrals are very limited. By contrast, your own PIP/MED PAY allows you to select your own doctor, chiropractor and other health care professionals such as specialists, with much more freedom of choice. Moreover, PIP also pays a portion of your wage loss (MED PAY does not). It would be an error to pass by a chance to purchase PIP. Please note that your HMO or health plan or military access affords no protection whatsoever for your passengers. What will you tell parents of children who were riding with your child on an outing

On to part 4