12.Wage Loss PIP payment: Pays part of wages not earned due to claimant's inability to work as result of an injury that are covered under personal injury insurance policy. But please note common restriction: this clause usually only kicks in after an absence from work of two consecutive weeks, and then, it pays only a percentage—usually 85%— of actual lost wages.

13.Medical Pay (MED/PAY): This policy pays medical bills of covered driver, family members, and passengers when injured in an accident, regardless of who was at fault. This coverage is required in some states, but not in others.

14.Collision Coverage: This policy helps pay for repairs or fair market replacement cost if your car is damaged in an accident caused by you or an authorized driver. This policy is always optional.

15.Comprehensive Coverage: This policy covers cost of repairs to or replacement of your vehicle should it be stolen, vandalized, struck in a hit-and-run, or damaged by an "act of God." Covered events vary from policy to policy but usually include fire, flood, and falling objects. This policy is always optional.

16.Deductible: It's amount of money that you agree to pay before a certain auto insurance policy kicks in. Deductibles are designed to cut down on insurance costs by eliminating small or frivolous claims. The higher deductible you're willing to pay, lower premium you earn. Collision and comprehensive policies almost always carry deductibles, and sometimes PIP and medical payments policies do too.

17.Actual Cash Value: ACV - An insurance valuation method used for automobiles which is based on cost of repairing or replacing damaged auto with one of like kind and quality, or its replacement cost less physical depreciation. The replacement cost is based on market value replacement cost, which varies by geographic region. 18.Fair Market Value: The price determined by marketplace. It is price a willing and qualified buyer will pay to buy, at which a willing seller will sell. Note that asking price of ads is not necessarily market price.

19.Exclusions: Situations that are not covered by a given insurance policy; specific exclusions are listed on your insurance policy.

If some of millions of dollars spent on advertising auto insurance would be devoted to fair payment of injured insured's' own claims against their own company, we probably wouldn't even have to make mention of this. However, advertisers' portrayal of insurance responsiveness with homey images, friendly messages, beautiful music and promise of quick claims service do not equate to quality when it comes time for payment for personal injury claims following an auto accident.

We know that getting your car fixed promptly is important. Some companies may be more responsive on property damage than others, but that should not be your first priority evaluating insurance service. A day or two wait for your car is nothing compared to being literally cheated out of your legitimate payments, as is practice of some of more aggressive companies. See discussion below and links provided. If getting your car fixed in fastest time is most important thing for you, you can ignore everything that is written in following paragraphs, because they focus on bodily injury aspects of auto insurance claims service.

So, our advice is to ignore advertising images: insurance industry did not become one of wealthiest in America by being everybody's best friend. Understand that these smiling people on television ads are really your adversaries. There are many thousands of reported cases where insured have been forced to sue their own companies. None of these cases has to do with getting people's cars fixed. Prompt property damage repair is simplest and easiest part of an accident claim. Instead, these lawsuits against insurance companies all are based on claims that an insurance company did not perform according to law and in accord with its own contractual provisions.

Research Suggestions to Check Out Auto Insurance Companies:

Our suggestion is that you research two or three companies.A good place to start is with Better Business Bureau, followed by a contact call to your state Insurance Commissioner. You can call Better Business Bureau (http://www.bbb.org) in your own area and learn how to inquire if any complaints have been filed. The most effective research, however, is probably through your state Insurance Commissioner . Use this url (http://www.naic.org/state_contacts/sid_websites.htm) provided to contact your Insurance Commissioner and obtain information in five topics: 1.Ask her how you can learn about number and types of complaints that have been filed with her against or about a company that you are considering. 2.Ask her how you can obtain a count of number of times a company has been involved in reported litigation, whether brought by insured against his own company, or by third party as a bad faith claim. 3.What is reported percentage of first and third party claims company settles by negotiation, as opposed to arbitration or litigation? Ask her for statistics relating to percentage of claims settled, versus percentage that goes to arbitration or litigation. Would it surprise you to learn that over half of claims of one of largest and most popular companies end up in arbitration or litigation? 4.Ask her what actions or enforcements she has had to take with respect to any company you are considering. 5.Does she know if any of companies use credit scoring to set premiums, and are there any restrictions in your state on use of credit scoring.

You Get What You Pay For:

You have heard advertisements that one auto insurance company is least expensive, etc. Understand that truth of old adage applies to insurance policy purchases: you get what you pay for . The best company is probably not cheapest. How can company policies that save premium costs have adverse impacts upon your wallet?

First, reason a company is cheaper is that it doesn’t pay out as much as another company, nor does it provide as much service. If your own company does not pay out in a fair manner, and if you are defendant in case (the tortfeasor ), expect that your chances of being involved in a lawsuit are much higher than if you were insured with another (quality) company.

Since insurance is going to foot bill anyway, why should that impact you? Well, you’ll have to be inconvenienced at home, at work, and at trial. You’ll be sued; you will have to take time off of work to see attorney who will be hired by your company to represent you; and you’ll have to testify at depositions and/or trial. Remember, you will not be paid lost wages to participate in your own defense. But in addition to time involved, it can be very stressful to be in a lawsuit. You will have to answer under oath regarding a number of topics, and your spouse may also have to participate.

However, biggest impact of adverse treatment by your own insurance company may not come when you are a defendant, but may come when you are a claimant versus your own company. This could be as a claimant under your own policy, either for payment of medical expenses or payment of wage loss under Personal Injury Protection ( PIP/MedPay ) provisions, or for underinsured/uninsured UIM coverage.

It is in these circumstances that many first party carriers become aggressive and literally cheat their own insureds out of legitimate payments. Most consumers have little knowledge of these practices, and aggressive companies are almost always successful in cutting off PIP payments for treatment far earlier than your own doctor would recommend. That is where they make money and that’s where you’ll find yourself in need of some help.

The company will respond that you have right to arbitration. But no attorney is going to become involved in a Personal Injury Protection/Medical Pay (PIP/MedPay) arbitration. There is not enough at stake to merit time and effort. You can be at mercy of company, so select wisely. In this respect, least expensive coverage may be no bargain at all .