Traffic, and road rage, is just getting worse and worse. Is it true that insurance won't pay for accidents caused by road rage?
Road rage, or aggressive driving, has been increasing at an alarming rate, as you may know from personal experience. There have always been short tempered drivers, and the extra traffic and frayed nerves caused by Hurricanes Katrina and Rita have brought many sad reports of road rage incidents.
You have no doubt been a witness to some forms of road rage yourself, such as: following too closely, yelling, making obscene gestures at other motorists or forcing other vehicles off the road or into the path of oncoming traffic. More serious forms include brandishing firearms and even shooting into other vehicles, killing or injuring the driver or passengers.
It is true that liability insurance may not pay for damage or bodily injury involving road rage. Many insurance policies exclude intentional acts from such coverage. That fact makes it even more important for us to raise our defensive driving skills to new heights. Dealing with this new breed of hostile drivers calls not only for increased alertness, but for self control and sound judgment.
Two defenses against road rage that are simple and easy to follow are courteous driving and reporting aggressive drivers to the authorities promptly.
Think of those little things you find most irritating in other drivers and avoid being guilty of them yourself. They include: tailgating, blinding other motorists by driving with your lights on high beam, driving too slow in the fast lane, speeding up when another motorist tries to pass and cutting in too soon when you pass a car.
Try not to respond aggressively to that first hostile action on the part of the other driver and report the aggressive driver to law enforcement officials as soon as possible.
Get the license number and other identifying information on the car and driver. If you have a phone in your car, alert local law enforcement officials as soon as possible, without calling attention to yourself. If someone else is in the car with you, perhaps that person can inconspicuously place a call without being detected.
Even though it is true that road rage may not be covered by insurance, the best reason you have for avoiding it is the safety of yourself, your family and other innocent people on the road.
After all the flooding caused by Katrina and Rita, I'm thinking about buying flood insurance for my car. Can I do that, even if it is an older car?
The only insurance you are required to carry is a liability policy to cover bodily injury and property damage to other people and their property. To help you decide whether to carry flood insurance (comprehensive) coverage, let's look at the protection you would get for your money.
Comprehensive insurance covers a wide range of damages that may occur through no fault of yours, including fire, theft, malicious mischief, vandalism, glass breakage and flooding. Notice that some of those losses can be quite costly regardless of the age of the vehicle. Replacing a windshield to pass a safety inspection is a notable example. Deductibles range from zero to $250. The higher the deductible, the lower the premium. If, for example, your vehicle is stolen and wrecked, under a $250 comprehensive deductible, you pay the first $250 and the policy would pay the rest, up to the insured value of the vehicle.
Specific factors you will want to consider before making a decision about buying this comprehensive coverage are the cost of coverage and the insured value of the vehicle. Talk with the agent (producer) who has the liability insurance on that vehicle to learn how much comprehensive coverage would cost and how much the insurance company can be expected to pay if the insured vehicle is damaged or destroyed.
You will also want to take into consideration the possibility that, as a second vehicle, this one may very likely be left behind if there is a major flood event that causes you to have to evacuate quickly.
If you decide to add comprehensive to the liability policy on this or any other older vehicle, do the math periodically on the comprehensive coverage just as you would on the more expensive collision coverage. When the price is right, policyholders often keep comprehensive on a vehicle as it ages because it is relatively inexpensive.
I am moving to Louisiana from Canada. What insurance do I have to buy if I own a car and a house?
First of all, let me welcome you to Louisiana. As to your question about what insurance you have to buy, the only insurance you are required to carry by law is 10/20/10 liability coverage on your motor vehicle. That is, if you are liable for damage or injury in an auto accident, the minimum liability policy will pay up to $10,000 for bodily injury to one person, $20,000 for bodily injury to more than one person and $10,000 property damage.
In addition, you will be required, by the lender, to buy collision and comprehensive coverage if there is a lien on the car. The same thing is true of property insurance on your home. The company holding the mortgage on your house will require you to carry insurance to protect the company's investment.
Most lenders will offer to provide the required insurance coverage as a part of your loan. However, it is cheaper if you buy your own policy. You fulfill the insurance requirement simply by showing proof of insurance at the closing of the deal on the house or car.
Shop around for quotes on automobile and homeowners insurance from two or more insurance companies. Companies may be able to give you a better rate if you carry more than one policy with them.
When getting price quotes for property insurance on your home, ask about any hurricane exclusions that might apply if you live on or near the coast. Wherever you live in Louisiana, you will want to consider buying flood insurance, which must be purchased as a separate policy.
Once you have narrowed your insurance choices to one or two, call us for further information. We can tell you whether the producers (agents) and companies you are considering are licensed to do business in Louisiana, whether any complaints have been filed against them, and what each company's rating is with national insurance rating services.
Health insurance is not required, but if your employer does not provide a health care plan, you will probably want to purchase some kind of health care coverage to help with potential medical costs.
While I was buying presents for my family’s wish list,
I was robbed by a thief who apparently had my car and packages on his wish list.
I have full insurance coverage on my car and house, but I’m not sure who will
pay for what. The police didn't find the car, or the watches and camera I had bought.
It sounds as though you have adequate insurance coverage, but it is true that your
reimbursement will probably come from different sources. Let’s begin by looking
at the coverage you have on the car. Your comprehensive, or fire and theft, insurance
will pay for your unrecovered car, minus the deductible. That is, if the actual
market value of your car is $16,000, and you have a $250 deductible on your comprehensive
coverage, you will pay $250 and the insurance company will pay the rest to replace
the car. If the car is financed, remember that you need to report the loss to the
company that carries your comprehensive and collision coverage, which may not be
the one that handles your liability coverage.
When you contact your producer (agent) to report the stolen car, be sure to ask whether your policy will pay for a rental car until you can get another one. Not all policies do. If you have a road-service policy, you might also check to see if it would provide a rental car when a vehicle is stolen.
Now, let’s talk about insurance coverage on the packages. Whether the packages
were in the front of the car or the trunk, you will probably receive little or no
reimbursement for them from your car insurance. One possible source of reimbursement
for stolen items recently purchased by credit card is the credit card company.
If your purchases are not replaced by a credit card company, they should be covered
under your homeowners policy, up to the limits of the policy, but you will have
to pay the deductible. Homeowners deductibles range on average from $50 to $250.
To avoid being a victim of car theft, always lock your car, and park in well lighted,
guarded lots. Don't attract thieves with tempting packages. Store your belongings
in the trunk instead of inside the car where outsiders can see them. Even if you
take a load of packages to your car and lock them in the trunk, don't assume they
are safe. Before going back to your shopping, move your car to a different location
if possible so that a thief watching the lot will think you have left the area.
Anyone who is the victim of a car theft or break-in should contact the police right away. Also alert all insurance carriers and credit card companies that may cover some of the loss.
Do I drop comprehensive at the same time I drop the collision on my aging car? Shouldn’t I carry comprehensive longer?
We often hear that we should consider dropping collision and comprehensive insurance as our vehicles get older. You’re right about the fact that we may decide to keep comprehensive coverage longer than we do collision.
People who borrow money to buy motor vehicles generally will be required to carry collision and comprehensive coverage until the loan is paid off. At that time, they have the choice of dropping collision and comprehensive coverage or just dropping the collision.
To determine whether you should continue to carry collision, gather information about what the value of that vehicle is in today’s market, given the condition the vehicle is in. Then add up what the collision coverage will cost you for the next couple of years. Be sure to take into consideration the amount of the deductible that you are carrying. If the cost of the collision insurance, including the deductible, is quite high compared to what you would get for the car if it were totaled, you may find it isn’t worth it to you to carry the collision coverage. Figure it a second time with a higher deductible, which lowers the premium, to see if that is an option. If you decide to keep the collision coverage, reevaluate it every year or so to make sure it is still worth your while to have it.
Comprehensive coverage, which insures you for a host of perils including fire, flood, theft, glass breakage, vandalism and malicious mischief, is considerably less expensive than collision, and it covers a number of losses that may be quite costly regardless of the age of the vehicle. The amount of the deductible is a consideration here, too. Comprehensive will cost you less if you are willing to accept part of the risk by carrying a higher deductible.
Do the math periodically on the comprehensive coverage just as you did on the collision before you dropped it. People often keep comprehensive on a car for several years because it is relatively inexpensive.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
My insurance producer told me I could get a discount on my car insurance if I take a driver’s ed course. Do I have to be a certain age to qualify?
Louisiana law states that insurance companies may offer a discount for driver’s education courses, and no age group is automatically excluded. In your case, your company obviously offers such a discount and your producer (agent) believes you to be eligible.
Because companies are not required to offer driver’s education discounts, policyholders who want to take such a course for a discount should contact their agent or other company representative. If such a discount is available, they should ask what restrictions the company places on the course. For example, does it have to be chosen from an approved list, or does the company evaluate courses on a case-by-case basis? Taking a driver’s ed course is probably a good idea at almost any age, especially if you haven’t had one lately. However, if your major reason for taking the course is to get the discount, be sure the course is approved before you enroll.
There are a number of driver’s education courses offered in different parts
of the state. Your church, community center or parish library should be able to
provide information on those that are held near you. The American Association of
Retired Persons (AARP) sponsors one of the best known programs. People 50 years
of age or older can enroll for a very modest fee.
We expect teenagers to take driver’s ed courses to help them drive safely despite their lack of experience, and those courses are now mandatory. We also think of senior citizens as needing driver’s training to help them compensate for slower reaction time and other physical changes that occur as we get older. The fact is that most of us could benefit from a refresher course on such things as the latest rules of the road and making the best use of safety features such as safety belts, child safety seats, air bags and antilock brakes.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
I’ve heard you can buy an auto insurance policy that specifies it will not cover a certain member of the family. Is that true? If so, can I also buy a policy that won’t cover any driver but me?
Let’s start with your first question. Yes, you can buy an insurance policy that excludes a named family member from driving the vehicle, but only under very specific circumstances. An example would be a son or daughter, living in your household, who has a very bad driving record. A driver’s exclusion is an agreement between the policyholder and the insurance company stating that the individual named in the exclusion will not be covered by the insurance policy on the vehicle.
However, the kind of blanket exclusion you ask about in your second question is not allowed in the state of Louisiana. The driver exclusion is an extreme measure taken only under the most adverse of circumstances. Normally, your insurance policy contract assumes that most of the people who would have occasion to drive your car would have your express or implied permission to do so. In such instances, the other driver would almost always be covered in the event of an accident.
An example of express permission to drive your vehicle would be if a friend asks to borrow the car because his vehicle is in the shop. When you hand over the keys, you very explicitly give permission for that person to drive your car. An extreme example of implied permission would be a friend or family member driving you or someone else in the family to the hospital in an emergency.
The tough part about a driver’s exclusion is that the excluded driver would not even be covered if he or she had an accident while driving you to the hospital in an emergency situation. However, because virtually everyone else has implied permission to drive the vehicle under these circumstances, the excluded person can help by locating another driver and assuring that person that he or she would be covered while driving your vehicle because of the implied permission provision in the insurance contract.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
I had an accident and now my insurance company says the finance company and I will both have to endorse the $2,000 check for the damages. Why is that necessary?
When you borrowed money from the finance company, that company was no doubt listed as lien holder, or loss payee, on your collision and comprehensive coverage on the vehicle. That means the finance company is legally protected by that policy just as you are. The same thing would be true if the lien holder was a bank or other lending institution.
You may think the two-signature endorsement is unnecessary because the amount of your damage claim is relatively small. Interestingly enough, the small claims are the ones that often lead to the most abuse (or neglect) on the part of the car owner. Here’s an example. Let’s say your vehicle’s damage was to the rear bumper and one quarter panel. The vehicle drives just like it did before the accident. In that case, many people just put off getting the repairs done, and over time, the $2,000 gets spent on something else and the damage is still there.
The problem is that the finance company knows a certain percentage of people will quit making payments on the loan and the finance company will have to repossess those vehicles to recoup its losses. If the damage has not been repaired, the company will be stuck with a damaged vehicle. For that reason, the finance company may not endorse the check until one of its representatives inspects the car to see that the repairs have been.
Sometimes, the insurance company may require that the body shop of your choice endorse the check instead. The insurance company’s payment will be based on the lowest of three estimates, but you can decide which body shop does the actual repairs. Requiring the body shop doing the work to endorse the check is just another way of making sure the insurance payment is used to make the needed repairs to the vehicle.
One final word: if you have to forward the check to the finance company for the endorsement, send it by registered mail and keep a copy.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
My car jumped out of park and sideswiped both my married daughter’s car and my son’s car. Is it true that the insurance company can refuse to pay for my son’s damage because he still lives at home?
Yes, you can assume that your auto liability insurance probably will not pay for the damage to your son’s car if he lives at home. As you probably already know, if your personal car had been damaged it would not be covered under your liability policy either. However, if your daughter is married and maintains a separate household, you are liable for damage to her property just as you would be liable for damage to your neighbor’s or a stranger’s vehicle or other property.
The concept involved here is commonly referred to as a household exclusion. Your children and their property are viewed by the insurance company in terms of whether they are members of your household. The mandatory liability coverage on your vehicles protects members of your household against claims brought by people who are not part of the household. The homeowners policy on your residence and other liability coverage on members of your household, such as an umbrella policy, operate in much the same way. The household exclusion applies to your son because he, unlike your daughter, was a member of your household at the time of the mishap.
An example of how the household exclusion rule applies to your homeowners policy would be if your dog bit someone. If the dog attacks you or another member of your household, you won’t expect to file a claim with your insurance company against yourself. However, if the dog bites someone else, a claim for medical bills and more may be filed under the terms of the liability portion of your homeowners policy. If the person who is bitten does not agree with the settlement offer made by the insurance company, he or she can file suit and the matter may have to go to court to be resolved.
From time to time, the issue of household exclusions comes up for discussion in different states. However, it continues to be an established rule of law recognized throughout the United States and beyond.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
My auto insurance company raised my rates after I had a couple of accidents. My producer (agent) told me I was about 55 percent at fault in both cases. I don’t think that’s fair. Is there any way I can get out of the rate hike?
It appears that your insurance company acted within Louisiana law and Department of Insurance regulations when raising your rates. Here’s why. As I explained in a previous column, Louisiana is a comparative negligence state. That means a driver can be anywhere from zero to 100 percent at fault in an accident. Generally speaking, your insurance company will assign a percentage of the fault to each vehicle in an accident and is required to have paperwork on file here at the Department of Insurance that allows for rate increases under certain circumstances.
In your case, it appears that your premium will increase by a certain amount or percentage if you have two accidents that are your fault in a certain period of time. Under Louisiana law, drivers are considered to be at fault in an accident if they are more than 50 percent to blame. On a related point, if the two parties involved in an accident are judged to be 50 percent at fault, the insurance company of each party will offer to pay 50 percent of the claim submitted by the other party.
There is one thing you may want to consider doing. You could challenge the percentage of fault assigned to you by asking the Department of Public Safety for a hearing. If DPS should decide that you were 50 percent or less at fault in either accident, the company would have to withdraw the rate increase and refund any additional premium you may have already paid.
Before asking DPS for a hearing, weigh the facts carefully. You may think your rate increase wasn’t quite fair, but it appears it is permissible under the law. You won’t accomplish anything by going to DPS unless you expect the hearing to show that you were responsible for 50 percent or less of the damage and injury in at least one of the accidents.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
Why did I only get paid for 75 percent of the damage to my wrecked car? After all, the other car hit mine.
Louisiana is what is known as a comparative negligence state. That means a driver can be anywhere from zero to 100 percent at fault in an accident. For example, let’s say there were three cars involved in the accident you describe. You were in front, in Car A. Car B hit you after it was bumped by Car C. In chain reaction accidents like this, if Car B’s insurance company assumes 75 percent of the fault for damage to your car, the chances are Car C’s insurance company will assume the other 25 percent. If more cars were involved, the same principle will apply.
There are, however, other factors that can make the situation more complicated. If the insurance companies of Car B and Car C do not agree on the percentage of fault, it may be necessary for the courts to decide the matter. Or, if Car C did not have liability insurance, you would have to try and collect the other 25 percent of the damage from the individual driver or owner of the car. If you had collision insurance at the time, you have another option. You can pay the deductible and let your insurance company attempt to collect from the other companies through what is called subrogation. You could get all or part of the deductible back, depending on how successful your insurance company was in its efforts to collect the total amount of the damage.
Another example of comparative negligence could involve your being partially at fault. For example, let’s say you were backing out into a busy street or roadway when the other car hit you. The insurance company might decide to pay only 75 percent of the damage. Even though the other driver should have maintained control, the company might well determine that you were partly to blame because you did not have the right of way.
Fortunately, your situation only involves property damage. When there is bodily injury, understanding comparative negligence can be even more important to you because larger amounts of money and the welfare of injured parties may be at stake.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
When we had a lot of heavy fog the other day I was amazed at the number of people driving without their car lights on. Are there some safety tips for driving in this kind of weather?
Many drivers don’t think of dense fog in the same way they do rain or other severe weather conditions. But just as the number of accidents rise when it’s raining, the number of accidents also increases when thick fog settles into an area.
Fog occurs when the air can’t hold anymore moisture, which generally happens early in the morning or late at night. Whether you start out in the fog or you suddenly come upon a fogged-in area, the key is to slow down and turn your headlights on low beam. Do not use your bright lights. Having your headlights on low will minimize the glare off the fog. It’s also a good idea to turn on your wipers, and you may need to turn on your defroster to clear condensation from your windshield.
Remember that fog severely reduces not only your vision but everyone else’s too. You should use patience, and try not to switch lanes unless it is absolutely necessary. Another rule-of-thumb is to use the right side of the road as a guide. If you use the center lane stripe or markers as a guide, you run the risk of veering into oncoming traffic.
If you feel visibility is too poor for you to drive safely, you should try to find a place where you can get completely off the road. Try to avoid just pulling over on the shoulder. The closer you are to the traffic lane, the greater your chances of being rear-ended.
You should also be cautious if you see emergency flashers when there is poor visibility. Studies have shown that drivers are attracted to lights, such as emergency flashers, and tend to follow them, even if they are off to the side of the road. This is what’s known as the “moth effect.”
If you have to drive in bad weather conditions, remember to slow down, use your windshield wipers and keep your headlights on low beam.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
My car was totaled in a wreck that wasn’t my fault. Will the other driver’s insurance company pay off my car so I can buy a new one?
When an adjuster says a car is a total loss, that means it would cost more to repair it than its market value. The adjuster will determine what the insurance company will pay, depending on the make and model of car and the general condition it was in just before the accident.
The above is true whether the adjuster is with the insurance company you have your collision insurance with or the one that has the liability coverage on the car that hit you. There are, however, two other issues that could affect the answer to your question. One has to do with whether you have liability insurance on your car, and the other with how much you owe on the car, in relation to its market value.
In the unlikely event that you did not have liability coverage on your car at the time of the accident, the “No Pay, No Play” law would apply. That is, an individual who does not have liability insurance cannot collect for the first $10,000 of damages in an accident, no matter who is at fault. However, if you had liability coverage on your vehicle, the liability insurance company of the at-fault vehicle should pay for your damage, up to the limits of the policy.
The matter of the car loan is a separate issue. Insurance policies deal with payment
of damage to a vehicle up to the limits of the policy. No consideration is given
to the amount of money you owe. Conceivably, you could have a car for a year or
more and still owe more on it than its market value. For the protection of people
who take out large or long-term loans on their vehicles, there is a separate insurance
policy available to cover that difference between what the car is worth and the
amount of the loan. It is available from lenders and, appropriately enough, is called
gap insurance.
That is, if your car is badly damaged or totaled, this additional insurance would
cover the gap between the worth of the car and the larger amount of the loan.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
I have heard that the usual rules of the road do not apply
to parking lots. If so, will this affect my insurance coverage if I'm involved in
a parking lot accident?
Many parking lots, including those at shopping malls, are on private property. As
you point out, not all the “rules of the road” apply in that parking lot,
although the ones regarding insurance do.
Procedures may vary somewhat from place to place, but generally speaking, the law
enforcement agency with authority in the area where the parking lot is located will
respond when you have an accident there. The law enforcement official will write
up an accident report even though the state laws that govern public roadways do
not apply in a private parking lot. This means the officer cannot issue citations
to the drivers for moving violations such as speeding, but the officer can still
take action against a driver for not having liability insurance.
Because there are no posted speed limits or traffic lights in most parking lots,
it can be tempting to cut across marked traffic lanes or drive in the wrong direction
on a one-way traffic lane. This tendency to disobey the rules that apply in parking
lots can make driving in them deceptively dangerous. There is also the added danger
of children darting out from between parked cars.
Now, about your insurance. Here, as in any place else you operate your automobile,
all the usual rules regarding insurance do apply, and most of them are just good
common sense. If a driver is backing out of a parking space in a private lot and
hits another car that has the right of way, the first driver is at fault. However,
there are many situations in parking lots that are not as clearcut. If both you
and the other driver are backing out of parking spaces or cutting across empty parking
spaces when you collide, both may be considered at fault. Generally speaking, you
must be at least 50 percent at fault for your liability to pay. Therefore, in many
parking lot incidents, neither person’s policy will pay for damage to the other
vehicle because the drivers share the liability.
The above is still subject to the restrictions of the “no pay, no play” insurance law. Under the law, a person who does not have liability insurance on the vehicle involved in an accident cannot collect from the other driver for the first $10,000 in property damage or bodily injury, regardless of who is at fault.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
When I made my car insurance payment a few days late, the insurance company turned me in to the Office of Motor Vehicles. It cost me all kinds of money to get out of that mess. Is it legal for an insurance company to do that to a long-time customer without warning?
Your insurance company is required to report a lapse in your mandatory liability coverage on a motor vehicle registered in your name regardless of the reason for the lapse. An insurance policy is a binding contract between you and the insurance company. If you do not continue to keep up your end of the bagain by paying the premiums on time, the policy is cancelled. At that point, your company will notify Motor Vehicles that your policy has lapsed, and the vehicle will no longer be covered by that liability insurance policy.
Given that reality, we at the Department of Insurance can only advise you on what steps you can take to minimize the possibility that this will happen to you in the future. Don’t let your liability insurance premium be one of those bills that gets paid at the last minute. If you pay by mail, make sure you allow plenty of time for unforeseen delays with mail service.
In fact, you should pay the premium early enough to receive confirmation of payment
in time to place the renewal card in the vehicle’s glove compartment before
the due date. Also remember to keep the old card too, until the date the new one
goes into effect. If you make your payment at your agent’s office, don’t
wait until the last possible day to do it, and be sure you have proper proof of
payment with you when you leave the office.
If money is tight, remember that the last thing you need is to risk paying out a considerable sum in fines and penalties for letting the liability insurance on your motor vehicle lapse, even for a few days. Not only that, but you could be facing insurmountable debt if you have an accident that is your fault during the time the vehicle is uninsured. Even if you have an accident that is not your fault in that uninsured vehicle, you will not be able to collect the first $10,000 in damages because of the “no-pay, no-play” insurance law.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
Cell phones in our cars have been getting a bad rap. But, don't you think we should pay more attention to other dangerous distractions as well?
The terrorist attacks of September 11 gave us many examples of how fortunate we are to have cell phones that allow us to communicate in times of need. That does not, however, lessen the need to use our cell phones safely and courteously.
Your point about paying attention to the many dangerous distractions in our vehicles is an excellent one. As the volume of traffic on our roadways increases, it becomes more and more vital that we drive responsibly and defensively at all times. One recent study shows that half of the six million crashes occurring every year in this country are caused by distracted drivers, and another estimates that up to 30 percent of fatal accidents are due to distractions.
Of course cell phones can be distracting when used while driving, and we have all
heard many theories on how to use them more safely. The following is a list of some
of the other distractions that may cause motor vehicle accidents.
*Eating and drinking - be especially aware of taking your eyes off the road to reach for a burger or bottle of water, not to mention being careful not to spill a hot beverage on yourself.
*Correcting children - if the children are fighting in the back seat, make good on your threat to stop the van and deal with them. They probably won't destroy the vehicle or each other before you can pull over.
*Grooming yourself - we've all seen women applying makeup at the wheel, and men have been observed shaving while driving.
*Playing with audio equipment - almost everyone is guilty of glancing down to change radio stations or pop in a CD or tape.
*Animated conversation - even before we had cell phones, many of us were guilty of forgetting where we were if we got into a lively conversation with passengers in the car.
We can all work toward being safer drivers by paying more attention to the road when behind the wheel.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
Are Acts of God and Acts of Nature the same thing? Are they covered by insurance?
The terms Acts of God and Acts of Nature are used to describe similar kinds of occurrences that, for the most part, are beyond human control. Hurricanes, earthquakes, and floods are commonly used as examples.
Most insurance policies do not directly cover the issue of coverage of Acts of God. Instead, insurance policies, especially homeowners or other property coverage, generally list either the perils that are covered or the ones that are excluded from coverage. Acts of God are usually not treated as a group.
Property insurance coverage on your home, for example, can range from a standard fire insurance policy that only covers a few types of losses to an All Risk policy that covers all kinds of losses to the property except those that are specifically excluded. The type of insurance needed to qualify for a home loan, or the cost of the policy, often dictates which policy an individual policyholder chooses.
Flood insurance is a familiar example of a peril that you can always expect to be excluded from your homeowners policy. Insurance to cover flooding must be bought as a separate policy. Some property insurance policies also exclude wind damage while others may include the additional cost of a separate hurricane deductible. For an additional premium, coverage for these commonly excluded perils can be purchased. Note that flooding, wind damage and hurricanes may all be defined as Acts of God, but they are treated quite differently in property and casualty insurance policies.
The rules governing Acts of God on homeowners insurance also apply to renters and commercial property insurance. However, automobile insurance must be considered as a separate issue. If a vehicle is covered by comprehensive insurance, it is generally insured for most physical loss (such as fire and flood), including theft. One notable exception is that comprehensive coverage excludes collision, which must be added to the policy for an additional cost.
Your question about Acts of God is a good one because it brings to mind the number of combinations of property insurance coverage that are out there. Policyholders need to educate themselves on what is and is not covered under the specific terms of each individual policy before a loss occurs.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
Next year, when I graduate from college, my parents’ auto and health insurance will no longer cover me. I was wondering if your office could suggest good insurance for me as a single person in my early 20s. Any information you could provide will be greatly appreciated.
As the regulatory agency for the insurance industry, we are not in a position to
recommend one company over another. However, we can provide help as you conduct
your search for the right insurance to buy. Here are some suggestions.
You may get some helpful hints about shopping for insurance carriers in each category
by going to our web site, www.ldi.state.la.us, clicking on “Consumers,”
then, going to the “Ask the Commissioner” columns. Beyond that,
we suggest that you shop around for insurance coverage. You may want to begin by
talking with the insurance people your parents use, but it’s a good idea to
get quotes from other agents or companies as well.
Once you have narrowed your choices down to two or three automobile insurance companies
or health care plans, contact us here at the Department of Insurance. Ask for the
A.M. Best Rating, other financial information, and the complaint history on the
insurance companies you are considering. This information can tell you a great deal
about the company’s ability to pay claims and its willingness to serve
its customers. Also ask about the complaint history on any insurance producers (agents)
who are involved. The information you receive should help you narrow your search
to one or two auto and health insurance carriers.
I hope you will be staying in Louisiana, but if you decide to move to another state, you can contact the state insurance department there for the same kind of information discussed here. Speaking of moving, consider the possibility that you may need renter’s insurance if you will be living in a place of your own.
One last word of caution. Be sure that coverage on any new policy begins on the exact date the coverage on the previous policy ends.
Good luck with your search, and let us hear from you any time we can be of help.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
When I smashed up my car recently, I was able to keep my insurance with the same insurance company, but my rates went up. How do they decide those things?
An insurance policy is a contract between you and the insurance company. You agree
to pay a certain amount of money in premiums and the company agrees to pay certain
costs if you have an accident. Each company has a plan for how much additional money
they will charge if you have one or more accidents that are your fault. The plan
may also take into account traffic violations.
In deciding whether to raise your rates or how much to raise them, the company has
to follow a set procedure. They can’t just arbitrarily choose an additional
amount of money to charge you and then charge the next person in the same circumstances
a different amount. However, the exact formula will vary greatly from company to
company.
What appears to have happened in your case is that the company reviewed your records after your accident and made the decision to charge you the allowable additional premium. Ask your producer (agent) for details about your company’s procedures. In some instances, future accidents and/or traffic violations will mean a further rise in rates, to the point that the company refuses to renew the policy. Some companies may actually move a person’s insurance to an affiliated company after only one at-fault accident. This can be a very expensive proposition involving a surcharge and significantly higher insurance premiums in the future.
Companies that advertise very low rates for drivers who have an accident-free record
may charge a great deal more if those drivers have one or more at-fault accidents.
People who are shopping for auto insurance will do well to check on what it may
cost down the road if they no longer have that perfect driving record.
None of us can be sure we won’t have an accident that is our fault, or a serious
traffic violation. However, it’s best to know ahead of time what it may cost
in insurance premiums if that happens.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
Do most insurance companies hire their own adjusters, or do they use independent adjusters?
Let’s begin by defining the term “adjuster.” Generally it is used to describe an individual who is employed by an insurance company to settle claims brought by an insured or someone else who suffers losses covered by an insured’s policy.
Some insurance companies directly employ staff to handle all their claims, while others use the services of independent contractors, at least for some of their business. For example, suppose you file a collision claim with your auto insurance carrier, Company X, who employs people to handle all its claims. In that case, you may talk with someone in the claims department when you report the claim, have someone with the company come out to inspect your car and perhaps even have that same person write you a check on the spot. If the accident is more serious and personal injuries are involved, you may find yourself working with the company for a number of months until all the medical bills are settled. At every step of the process, you will be working with someone who is on staff with Company X.
Now suppose you have insurance with Company Y who uses contract adjusters. Your initial accident report may be handled by someone in the claims department of the company, but a contract adjuster will come out to inspect property damage to your vehicle. Once the inspection is done, the contract adjuster will turn in his report to the claims department of the company for final review.
By contrast, Company Z may not have adjusters on staff at all, or at least not in the particular locale where the claim is being filed. In that case, an independent adjusting firm will be hired by the company to handle the claim from beginning to end.
Independent adjusters perform a vital function by making claims services available to insurance companies when they are needed. However, whether an insurance company has a full-service claims department or uses contractors for some or all of its claims work, that company is responsible to its policyholders and to the Department of Insurance for the way each claim is handled.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
I've always had a boat and jet skis but have never insured either. What can you tell me about insuring my boat and the rules and regulations for my jet skis?
In the past few years years, there has been a surge in the number of boats and personal watercrafts (commonly known as jet skis and wave runners) on Louisiana waterways. With this surge, the need for insurance protection for boaters and extra precautions on the waterways has gone up as well. As you may know, Louisiana recently passed a law raising the minimum age requirement for the operation of a personal watercraft to 16 years old.
Not surprisingly, over half of boating accidents involve collisions between two boats, and all too often, someone is hurt or even killed. If you are found liable in an accident involving your boat, you will be responsible for the property damage and bodily injury incurred by other people and property in the accident. These days, you need liability and medical coverage on the water just as surely as you do on our streets and highways.
To learn more about what kind of boat insurance is best for you, begin talking with the producer who handles your auto and homeowners insurance. If your boat is a small, noncommercial one, you may be able to obtain liability insurance on it by adding a rider to your homeowners policy. Usually, adding a rider is not an option when dealing with a personal watercraft. It is likely that a separate policy will need to be purchased to cover liability and property damage. Ask your insurance producer if he can sell you an individual policy to cover your boat or recommend someone who can.
It is important to remember that many of the rules of the water apply not only to operating a boat but also to operating a personal watercraft. Louisiana has certain requirements for operating a personal watercraft. For example, riders must wear a flotation device approved by the United States Coast Gaurd at all times, and there must be a working fire extinguisher on board. Otherwise, the owner of the watercraft may face a stiff fine. Taking a boating safety class is also recommended, but not required, for boating enthusiasts.
If you have more questions on how to obtain boat or personal watercraft insurance, please contact us here at the Department of Insurance.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
I got a ticket for running a red light and hitting a truck. Do I need anything other than my regular proof of insurance when I go to court about the ticket?
No one was hurt, but it will take about $3,000 to repair the truck. Yes, you will need to take additional insurance papers with you when you go to court about the ticket.
Because you were ticketed for being at fault in the accident, Louisiana law requires that you have a Letter of Restitution from the Claims Department of your insurance company when you go before the judge. Some people think their insurance policy or a letter from their insurance producer (agent) stating they have liability insurance is all they need for their court date. However, the law requires proof that you can cover the costs of this particular accident. That means a claims representative of the insurance company must review the case and verify that the insurance company will pay the damages. A letter from your producer will not be acceptable.
To get the necessary Letter of Restitution, you will need to contact your producer or other insurance representative to complete an accident report if you have not already done so. After the report is filed, you must wait to hear from the adjuster.
If you do not have the appropriate letter when you appear in court, the judge can sentence you to 30 days in jail on a charge of contempt of court for failing to comply with the law.
If the adjuster does not contact you within a reasonable length of time, call your producer back and make it clear you must have the letter, or at least a fax copy of it, to take to court with you.
It is true that the producer and your insurance company should be aware of the law and make sure that you have the proper papers in a timely manner. However, you may have to insist on getting what you need, especially if you were a little late reporting the accident to the company.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
I'm thinking of trading cars. Will my insurance be higher on the new one?
How much more you can expect to pay for insurance on your new vehicle will depend a great deal on differences between the type and model year of the new one and the one you now have.
We all have a basic understanding that a collision claim on your new vehicle will cost the insurance company more than a similar claim on a comparable model that is seven years old. We also understand that a high performance vehicle may have more exposure to risk than the typical midsize sedan. Furthermore, insurance companies have begun to go beyond the basics to match their insurance costs much more specifically to the accident record of the type of vehicle being insured.
In the area of property damage to other vehicles, for example, some major companies are beginning to charge higher or lower rates depending on the size of the insured vehicle. Medical coverage may also cost more or less, depending on whether the insured vehicle is considered safer for its occupants than others would be. Furthermore, companies do not necessarily agree on what the insurance rates should be on these various vehicles.
This means that now, more than ever, you have to ask specifically what a particular insurance company will charge for insurance on the vehicle you are thinking of buying. Talk to your present insurer and consider getting premium quotes from other insurance companies as well.
It is particularly important for you to research those prices before you discuss financing a vehicle. The dealership where you buy the car may well offer to finance the collision and comprehensive coverage as a part of the loan. Before you choose that option, be sure to weigh the relative cost and convenience of financing the premium as opposed to the cost of buying the policy independently. Also be aware that, if you do buy your own collision and comprehensive coverage as required by the loan, you must show proof of coverage at the time you close the deal on the vehicle.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
I carry the required 10/20/10 liability limits on my car and my truck. Is that enough, or should I raise the limits?
Let's begin by looking at what the required 10/20/10 auto liability limits actually cover.
If you have a wreck that is your fault, your 10/20/10 will pay up to $10,000 if you are found liable for the injury or death of one person in a single accident, up to $20,000 total for the injury or death of more than one person, and up to $10,000 for property damage.
Now let's look at what that 10/20/10 insurance will pay if, for example, your car skids on a slick road, causes extensive damage to a $20,000 vehicle and seriously injures three people in the other vehicle. If the medical bills for the three people run $10,000 each, you will owe $10,000 for medical bills over and above the $20,000 for bodily injury that the insurance company will pay. On the property damage side of the equation, if the other car is totaled, the insurance policy will pay the maximum $10,000 for property damage, and you will owe the remaining $10,000.
The bottom line in this scenario is that you will be left with the total liability of $30,000 after your insurance company pays the maximum amount under your basic 10/20/10 liability limits. The cost could go much higher if the bodily injuries lead to lawsuits involving other issues, such as loss of wages for long- term disability. Even if no one is injured in an accident, the $10,000 limit on your basic insurance policy is woefully inadequate when you consider the cost of replacing most of the vehicles on the road today.
Although you hope you don't have a wreck that is your fault, these examples strongly suggest you should raise the liability limits on your auto insurance. That is especially true if you have a steady income and other financial assets, such as a home or business.
Talk to your producer (agent) or other insurance representative about the cost of higher liability limits. Check on limits of 20/40/20, 100/300/100 or more, depending on your individual situation. You may be pleasantly surprised to learn how inexpensive it can be to increase significantly your liability limits.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
l have two children taking cars to college with them next year. My 18-year-old son will be attending a Louisiana school just 100 miles from our home, and my 21-year-old daughter will be going to school in Texas. Can I still insure them as part of my household?
Let me begin by saying that all the information provided here applies equally to male and female students. In response to your specific question, you can retain your 18-year-old son's vehicle as part of your household because he is single and is a student in a Louisiana school. You will probably want to do this for at least two reasons: the cost will no doubt be less than it would be if he bought insurance elsewhere, and you will have the advantage of keeping his insurance with your company.
The insurance for your 21-year-old daughter will be going to school in Texas may be a problem, depending on your insurance company. If the company is licensed to do business in Texas and your daughter has a good driving record, she should be able to stay with that company. Her car, however, will no longer be eligible for any multi-car discount you may have on your family vehicles.
Even if your children remain with your present insurance company, each will need to pay the insurance rate that applies to the area where he or she lives and goes to school. That is particularly true of your daughter because she is going out of state.
If your daughter, or anyone else, is canceling an automobile policy with one insurance company and replacing it with another, it is important to maintain continuous coverage. That is, the effective date of the cancellation on the current policy should be the effective date of the coverage under the new policy.
For example, if your daughter isn't going to use her car for a few days while she is moving, she should not cancel the old policy and pick up with a new one a week later. The money she would save by not having insurance those few days could cost her much more in higher premiums in the long run because of the interruption in coverage.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
The subrogation clause in your automobile insurance policy allows you to give your insurance company the right to take legal action for you under certain circumstances.
Let's take a look at what that means if you decide on subrogation in this case. You file your claim under your collision and your insurance company assigns an adjuster to estimate the cost of damage just as with any other collision claim. The adjuster tells you how much the company is willing to pay for the damage, and you choose the repair shop. You pay the $250 deductible first, and the company pays the rest, up to the agreed upon amount. Ask your adjuster if your company will pay for other allowable charges, such as the cost of a replacement vehicle while yours is out of service.
So far, this is no different from any other collision claim. What is different is that under subrogation your insurance company can take legal action to seek reimbursement from the company insuring the at-fault vehicle or from the car's driver or owner. Generally speaking, if your insurance company gets its money back, you will get your $250 deductible back. However, you shouldn't count on it. Furthermore, if your insurance company is successful, it will probably take a long time.
If someone in your car had been injured, subrogation would be involved in the payment of medical bills. You could file a claim for medical coverage under your auto policy, but the amount of coverage wouldn't be enough to be of any real help. You would be better off filing a claim with your health insurance carrier. In that case, you would probably be asked to sign a subrogation agreement allowing the health care plan to seek reimbursement for its costs.
When you have an auto accident, it is always better to collect directly from the at-fault insurance company rather than make a claim against your company if that is practical. However, as your producer said, subrogation may be the best course of action in this case.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
It is, of course, better if the only people who drive an automobile are those listed as drivers on the liability insurance policy. There are, however, times when you may need to drive someone else's vehicle, such as in the situation you describe.
In the event you do have an accident while driving someone else's car, the basic rule of thumb is for the liability coverage on the vehicle to pay first. Let's look at how a settlement would be handled if you had such an accident and both you and your neighbor carried the basic 10/20/10 policy.
The basic policy pays up to $10,000 for bodily injury to one person in a single accident, up to $20,000 for bodily injury to more than one person and up to $10,000 for property damage. Let's also assume that one person in the vehicle you hit had medical bills of $15,000 and the vehicle had $12,000 worth of damage. The policy on your neighbor's car would pay the first $10,000 for the passenger's medical expenses, and your insurance company would pay the remaining $5,000. The neighbor's policy would also pay the first $10,000 on the property damage claim and your policy would pay the remaining $2,000.
If your neighbor's car were damaged in the accident, his collision would apply just as it would if he were driving the car. For example, if his car had $5,000 worth of damage and he carried a $200 deductible collision insurance policy, he would pay the first $200 and his insurance would pay the rest. If your neighbor did not have insurance on his car when you had the accident, your auto liability policy would cover you, just as it would if you were driving a rental car or other vehicle belonging to someone else.
Many accidents, such as a multi-vehicle pileup, make a settlement much more complex than the one described here. Contact your insurance company or call us here at the Department of Insurance if you have questions about how a specific claim is being handled.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
You've no doubt heard of the controversy surrounding the use of what is called "aftermarket crash parts." This term applies to non-mechanical sheet metal parts of a motor vehicle that are manufactured for replacement of damaged parts such as doors, hoods and trunk lids. The controversy stems from charges that vehicles repaired with aftermarket crash parts were unsafe and of poor quality.
Since 1991, Louisiana state law has required that insurance companies let the vehicle owner know, in writing, if aftermarket crash parts are included in the estimate of repairs for the vehicle. This is in addition to the requirement that the insured vehicle be repaired with parts of "like kind and quality" to the ones being replaced. The law specifically sets forth a clearly worded statement that must be included in the disclosure.
In 1995, when I learned that some companies were ignoring the disclosure law, I issued a directive putting all insurance companies on notice that they will be subject to severe penalties if they are not in full compliance with that law.
Here are some steps you can take to ensure that you get the best quality repair job available for your car:
1. Ask to see the itemized estimate of repairs. The written estimate
must clearly identify all items to be replaced with aftermarket crash parts.
2. Check out the manufacturer. Any aftermarket crash part is required
to bear the logo or name of the manufacturer. If you find that the manufacturer
of the parts listed on the estimate is not reputable, don't accept the estimate.
3. Talk about the timeline. Especially with late model vehicles, you may be able to negotiate for a new part rather than the aftermarket crash part if the change will significantly speed up the repairs on the vehicle.
4. Call us if you can't reach an agreement. We will work with you to ensure that your insurance company complies with the law and Department of Insurance regulations when repairing your automobile.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
My car was stolen from my carport while I was on vacation. When I got home ten days later, I reported the theft to the police and the insurance company. Why did I get the feeling that I'd done something wrong?
You do not say, but I am assuming your insurance company honored your claim under the comprehensive coverage of your insurance policy. Your policy requires that you report a theft to the insurance company and to law enforcement in a timely manner, and you indicate that you did that. If you are having a problem with your claim, contact my office at the number given at the end of this column, and we will work with you and the company to resolve it.
The unspoken criticism you felt when you reported the theft may have been related to the fact that you left your home unattended for an extended period of time. Let's look at what you may want to do differently next time.
As you know, your home should look lived in while you are away. Discontinuing newspaper and mail delivery may help, but many experts say it attracts less attention if you have someone come by each day to pick up the paper and the mail. You can also leave lights on inside the house, preferably on a timer programmed to turn them on and off at intervals. It is also good to leave a radio on.
Be sure the person who is checking on your property has a number where you can be reached in an emergency. Also, alert local law enforcement to the fact that your house will be empty for several days. If you must rely solely on law enforcement to keep an eye on your home, leave the emergency number with them.
Property damage from many insurance-related losses, including fire, storm damage and break-ins, can be greatly reduced if they are detected quickly. You will rest easier on your next vacation if you have a plan for safeguarding your home and responding to emergencies while you are away.
You may also want to ask your producer (agent) about anti-theft measures that would qualify you for a discount on your home or auto insurance. Examples would be having deadbolt locks installed on the doors of your home or having the vehicle identification number etched into the windshield and windows of your car.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
My spouse and I are planning on driving our car while visiting Mexico. Will our current auto insurance policy cover us?
Driving your own vehicle on vacation is a wonderful way to get around because it gives you a great amount of freedom. However, driving in Mexico can be very tricky, particularly where automobile insurance is concerned.
Mexico has its own laws, rules and regulations. Not surprisingly, auto accidents in Mexico are subject to the laws of Mexico only, not the laws of the United States.
While Mexico does not require automobile insurance, it is against the law to have an auto accident in Mexico. The Republic of Mexico considers an auto accident both a criminal offense and a civil matter. If you have an accident that causes injury to anyone, including your own passengers, the Mexican police may take you into custody and detain you until they determine who is at fault.
If you are involved in an auto collision in Mexico, you must be able to 1) prove that you have insurance recognized by the Mexican government, or 2) prove you have the financial ability to pay any judgment against you.
If you are thinking of taking out an endorsement under your U.S. insurance policy to cover you when driving south of the border, be aware that Mexican authorities will not recognize endorsements as proper insurance coverage. Endorsements will provide only limited coverage to you, your vehicle and any passengers riding with you. You must have insurance through Mexican insurance companies.
To avoid any possible problems, consider purchasing auto coverage from a licensed Mexican insurance company before entering the country. For information about obtaining Mexican insurance, ask your local insurance agent for names of authorized U.S. agents who sell Mexican automobile insurance. You can also search for agents in the local telephone directory when you reach the border.
Even if you do have a Mexican auto policy and are involved in a wreck, you won’t be able to leave the country until you or your insurance company makes amends for the damages you caused. If no one was injured in the accident, you will probably be allowed to leave within a matter of hours. However, if you injure another party, you may be detained until your insurance company has gathered all of the contact information needed from all parties involved.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
I am thinking of purchasing a motorcycle. Do you have any tips on
what kind of insurance I will need?
You ask a good question about a subject that is of great interest to me. I have
been an enthusiastic motorcyclist for many years.
As you probably know, you are required by Louisiana law to have the minimum
10/20/10 liability insurance on your motorcycle, just as you must carry on any other
motor vehicle you own.
Liability insurance on a motorcycle isn't terribly expensive because statistics
show that motorcycles do relatively little damage to larger vehicles. In addition,
the majority of motorcycle accidents do not involve any other vehicle.
If you have an accident with your motorcycle that is your fault, the minimum liability
policy will provide you with liability protection for damages up to $10,000 for
bodily injury to one person, $20,000 for injury to more than one person in a single
accident, and $10,000 for property damage.
Because motorcycle accidents often do not involve another vehicle, it is particularly important that you have first party medical coverage on your policy. If you are equipped to carry a passenger, you will want to have passenger medical coverage as well. Also, be aware that the 1999 Louisiana motorcycle helmet law allows people over 18 years of age to ride without a helmet, but only if they are covered by $10,000 in medical benefits.
This coverage will pay your medical bills up to the limits specified in the policy
if you are injured in any accident, regardless of who is at fault. If your motorcycle
is financed, the lender requires you to carry collision and comprehensive coverage,
just as on any other vehicle. You will probably want to carry comprehensive coverage
even if your motorcycle is paid for.
Motorcycle insurance is considered a specialty market, so the company who carries
your other motor vehicles may not offer motorcycle coverage. Shop around before
making a final decision on where to buy your motorcycle coverage.
You may have noticed that quotes on motorcycle insurance vary greatly from one advertisement
to the next. If you are considering buying coverage from a company you are not familiar
with, don't sign on the dotted line until you call us here at the Department of
Insurance for further information on the company.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
Carjackings seem to be prevalent all the time. Any tips on how
to avoid them?
We have always known there is a possibility we would be the victim of a car
theft. As you point out, we now have the added concern that our automobile could
be forcibly taken away from us, probably at gunpoint. When that happens, the theft
is known as carjacking.
Carjacking is often thought of as something that happens in major metropolitan areas,
and many times that is the case. However, this popular kind of theft can take place
anywhere there are people and automobiles. Our major defense against carjacking
is to know how these thieves operate and always to be on the lookout for them.
Carjackers may strike when your car is stopped, or a carjacking gang may set up
what is called a "bump and run" situation to cause you to stop your car.
Favorite times for carjackers to hit are when you are getting in or out of your
car or are sitting in it at a stop sign or traffic light.
In a "bump and run" situation, the targeted car is in motion when the incident begins,
and two or more thieves are involved. One carjacker will pull up behind a moving
vehicle on the roadway and bump it. When the unsuspecting driver gets out to inspect
the damage, one of the thieves forcibly takes the targeted vehicle. To help guard
against "bump and run" carjackings, experts advise drivers to use the center lane
whenever there are three lanes available on a roadway.
Carjackers most often take a car to sell it or to use it in another crime, such
as drug trafficking or robbery. However, 90 percent of carjackers carry handguns,
so the potential danger to you and your passengers is an added incentive for avoiding
situations that might lead to a carjacking.
Be especially aware of the possibility of a carjacking in the evenings, on the weekends,
and in the month of December. Parking lots, city streets, your own driveway, car
dealerships and gas stations are prime places where these thefts occur. Always be
aware of what is going on around you when you approach your vehicle, and remember
to glance in the back seat and under the car before unlocking the door.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana
Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write
Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
My home and my truck were damaged this week by a storm. I don't
know yet if it was from a tornado or straight line winds. Will my homeowners insurance
pay more if the damage was caused by a tornado? What else do I need to know before
I file a claim?
We hear a lot of discussion about whether storm damage was caused by a tornado
or straight line winds. The fact is that the amount your insurance policy will pay
is not affected by whether the damage was caused by a tornado or straight line winds.
The amount paid will depend on a number of factors, including the dollar amount
of the deductible, the type of damage, and the type of property insurance policy
you purchased. Although you didn't mention flood damage, always remember that flooding
is not covered under your homeowners, renters or other traditional property insurance.
To find out what your homeowners and automobile insurance policies cover, contact
your producer (agent) or other insurance company representative as soon as possible.
It's a good ideas to have your insurance policy or policies on the damaged property
with you when you call. The policy number and other information will help your producer
or company answer questions about what your insurance covers. When filing a claim,
especially after a storm, be sure to give a phone number where you can be reached
during the day.
If you have hail or other damage to your truck and it is drivable, you may want
to meet the adjuster sometime during the day at a place close to where you work.
Of course, the adjuster will have to come to your home during daylight hours to
inspect the damage to your house and other immovable property.
Comprehensive insurance on your damaged vehicle will pay for hail and other storm
damage just as it does other covered perils. For example, if you have $250 deductible
on your car, the insurance company will pay for damages up to the value of the car,
minus the $250 deductible. Any car that is financed or leased is probably going
to have comprehensive coverage on it, although the amount of the deductible will
vary. If your liability policy doesn't include collision and comprehensive coverage,
look for a separate policy in your car loan or lease papers.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
I may start using my car for business. Will my present auto
insurance policy cover me when I'm working?
Whether your personal auto insurance covers you while you are using the car for
business is very much a matter of individual circumstances. If you use a company
car, your employer will no doubt furnish the liability insurance. However, when
driving your own car while working, you will probably be expected to carry your
own insurance. Talk with your employer about whether the company will provide any
insurance coverage on your personal car while you are conducting business.
If you will not be using your car extensively for business purposes, you may not
need additional coverage. However, you may want to consider raising your liability
limits, especially if the policy you now have is for the minimum required amount
of liability. Your producer (agent) will have that information. And it is vital
that you notify your insurance company of your plans. If you have an accident, your
insurance company can deny the claim if you have not been truthful with them about
the use of the car.
If you will be using your car for business more than 50% of the time, or to transport
merchandise, talk to your producer about the possibility of buying a commercial
auto policy.
Most large employers carry commercial policies that cover employees traveling on
business. In this case, if you had an accident involving your car, you should report
the accident to both your insurance company and your employer's insurance representative.
Together the two companies will decide which policy pays first. Most employers who
furnish company cars to their employees will let you know in advance what insurance
coverage they provide and will have the necessary documentation in the glove compartment.
If you work for a company that is not headquartered in Louisiana, or if you are
renting a car, be sure to have the proof of insurance card required by Louisiana
in your glove compartment. Even though liability insurance is the owner's responsibility,
you don't want the car to be impounded while you are driving it.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
A truck backed into my car a week ago. The driver's insurance
producer told me they haven't done anything about my claim because the insured hasn't
returned their phone calls. How long can these people put me off because they haven't
heard from the insured?
Let me begin by explaining that when you file a claim after an accident, you are
actually filing the claim with the insurance company. However, when the other vehicle
is insured with a local insurance producer (agent), contacting the company's local
producer is probably the fastest way to get the claim process going.
After any accident, it is very important that you get the name and telephone number
of the other vehicle's insurance company, not just the name of the producer, before
you leave the scene. The company name and phone number should be on the Proof of
Insurance card motorists are required to carry in the vehicle. If not, it should
be on the police report. Even if you have a minor accident on private property and
the police are not called, you should still write down the name and address of the
insurance company, along with the driver's license number, address and phone number
of the other driver.
Now let's look at your specific question of how long you can be put off because
the insured has not properly reported the accident. Louisiana law requires that,
unless there is a catastrophe, the insurer must initiate loss adjustment within
14 days after that company has been notified of the loss by the claimant. Getting
the insured person's side of the story is the responsibility of the company and
cannot be used as an excuse for delaying action on your claim.
If you continue to have problems with this insurance company, call us here at the
Department of Insurance and ask to speak to someone about an auto insurance claim.
Anyone with insurance-related questions or concerns is invited to contact the Louisiana Department of Insurance at 1-800-259-5300 or 225-342-5900 in Baton Rouge or write Department of Insurance, P.O. Box 94214, Baton Rouge, LA 70804-9214.
Are four wheelers and go-carts allowed on public roads? I see kids out on them all the time.
Four wheelers and go-carts are just two of several types of small, motorized vehicles,
called "all-terrain vehicles." Others include three wheelers and six wheelers. None
of these vehicles are designed for use on public roads.
There are several reasons why children and adults should refrain from operating
these vehicles on our streets and highways. This is, of course, particularly true
of children. But no matter how mature or experienced the driver is, none of the
all-terrain vehicles mentioned here are capable of performing on the road safely
under normal driving conditions, and certainly not in emergency situations.
State police accident records show that a number of Louisiana children and adults
have been seriously injured and even killed in accidents involving all-terrain vehicles
on our roadways. As a result, enforcement of laws against violators has been stepped
up in many areas of the state.Stepped-up law enforcement does not mean that officers
will simply tell a 14-year-old boy's parents that he was riding his four wheeler
on a busy highway. It means that there are a number of very serious charges that
can be brought against owners and operators (including minors) of all-terrain vehicles.
Those charges include operating a vehicle on a public roadway without a driver's
license, operating an unsafe vehicle on a public roadway, and careless operation
of a vehicle.
The parent or other supervising adult responsible for a child at the time of the
incident or automobile accident can be charged with allowing an unlicensed driver
to operate a vehicle, allowing an unsafe vehicle to be operated on a public roadway,
not having proof of liability insurance in a vehicle, contributing to the delinquency
of a minor, and criminal negligence. Criminal negligence is a felony punishable
by imprisonment at hard labor.
I commend law enforcement officials in their efforts to get all-terrain vehicles
off our highways. You can help, too, by letting adult violators of all-terrain vehicles
in your neighborhood know of the seriousness of this problem.
Anyone with insurance-related questions or concerns i