Vehicle Insurance

October 4, 2008

My previous post was about Home Insurance and the Calamities covered in Home Insurance. Today I am giving my views about Vehicle Insurance.

Vehicle Insurance

It also known as auto insurance, car insurance, or motor insurance this insurance is being purchased for car, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accident and against liability that could be incurred in an accident.

Needs of Vehicle Insurance
Now days motor vehicle accidents are leading cause of death, even if the trend has somewhat declined over the past 20 years. Indeed, motor vehicle accidents are a significant cause of death in comparison with air and space. So the need auto insurance is very important now a days either for two-wheeler insurance or four-wheeler insurance or a trucks. As the criteria for the Automobile Insurance and benefits associated with it are almost the same for both two-wheeler and four-wheelers .This section will deal with some of the other benefits which are associated with insurance .The insurance provides the necessary cover if you meet with some unforeseen incident or an accident.
Coverage of Vehicle Insurance

Bodily-Injury Coverage: It includes medical bills and lost wages, property-damage. It pays to repair or replace property you destroy, such as other cars or property you run into, such as fences. It can also pay for “pain and suffering” damages if someone sues you after a car accident but it is only up to your liability limits.
Liability Coverage: It is essential. States require certain levels of minimum liability insurance because that is the coverage that pays for damage you do to others, including bodily injury and property damage. It also pays for your legal bills if you cause an accident.

Collision Coverage:
Its all up to the person, if you cause a car accident, the collision portion of your policy pays to repair your own vehicle. Your car is considered “totaled” when the repair costs exceed a certain threshold of the car’s value, such as 70 percent. At that point, the insurance company will tow away the car to the salvage yard and offer you the actual cash value of your car.
Comprehensive Coverage: It pays for damages to your car that are not due to car accidents Theft, fire, vandalism, natural disasters and hitting a deer are included. Also, your glass coverage comes under the comprehensive portion of your policy. If your windshield cracks, comprehensive coverage saves the day. As with collision coverage, there is a deductible for any comprehensive coverage claim.

Uninsured/Under insured Motorist’s Coverage:
Uninsured motorists (UM) coverage pays for medical bills if you are struck by someone who is uninsured or if you are a victim of a hit-and-rum driver. UM is required in many states. Similarly, under insured motorists (UIM) coverage kicks in when someone causes an accident but doesn’t have enough insurance to cover all the medical bills. In that case, the at-fault person’s insurance pays out to its maximum and then your UIM coverage pays for the remaining bills, up to your own limit. UIM coverage is required only in Connecticut, Maine, Minnesota and Vermont, according to III. UM and UIM coverage also cover pain and suffering claims and, in some states, also cover property damage.

Health Insurance

October 3, 2008

Health Insurance

Health insurance is one of the most important investments an individual can make for his/her health and for family member’s health , its also a insurance against loss due to ill health , this term “Health Insurance” is generally used to describe a form of insurance that pays for medical expenses. Health insurance covers medical expenses for accidents or sickness, on a first-party basis, and regardless of fault. It covers the charge .For hospital, physician, and other medical expenses resulting from illness or injury. We can say that it’s a financial protection against all or part of the medical care costs arising from accidental bodily injury or disease .it can be obtained on either an individual or a group basis. It also covers normal and preventive care such as check-ups, prenatal and baby care.

Types of Health Insurance

•    Traditional indemnity plans (fee-for-service plans)
•    HMOs(Health Maintenance Organizations)
•    PPO (Preferred Provider Organizations)
•    POS ( Point-Of-Service plans)

Traditional indemnity plans

Traditional health insurance is known as indemnity or fee-for-service health insurance, traditional health plans typically offer the most choice of doctors and hospitals, in this you pay a certain amount of your medical expenses up front in the form of a deductible and afterward the insurance company pays the majority of the bill. With traditional health insurance, you can visit any doctor or healthcare provider, change providers at any time, and enjoy national coverage. You will pay a premium for this type of freedom, as traditional plans are more costly than managed care plans for both individuals and employers than managed care plans.

An HMO, Health Maintenance Organization, is a type of insurance plan that focuses on the long term care of its insured and is normally less expensive than a Major Medical Plan. Each patient has a Primary Care Physician, who is responsible for providing preventive care and coordinating care for the patient if additional specialists or hospitalization is necessary. This keeps costs down .In addition, limiting choices, such as choosing physicians only within a network and not covering services that are deemed unnecessary, controls costs.

A PPO (Preferred Provider Organization) is similar to an HMO as there is a network of physicians, but unlike an HMO in that an insured is not limited to network physicians and can see any doctor they choose. However co-payment and deductibles will be less for services. In addition, network physicians determine reasonable charges therefore, if an out-of-network physician charges more for services, the insurance company will still pay only 80% of the in-network charges.

Point-of-service plans are similar to PPOs, but they as Primary Care Physician (PCP). You’ll need to choose your PCP from among the plan’s network of doctors. As with the PPO, you can choose to go out of network and still get some kind of coverage. To get a referral to a specialist, though, you usually must go through your PCP. You can still choose to refer yourself, but it’ll mean more hassles and more money coming out of your pocket. If your PCP refers you to a doctor who is not in the network, the plan should pick up most of the cost. But if you refer yourself out, then you will probably have to deal with more paperwork and a less reimbursement.