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Sunday, August 17, 2008

The history of car insurance in the United States.

Auto insurance policies assume the risk of financial loss in the event of a car accident, which caused bodily harm, and damage of property of those involved. In the United States, almost all states require car insurance for all drivers. But how did this come to be?

The first auto insurance in the US was released in 1897 in response to the increasing production of vehicles. By the 1920s almost all car owners already had their cars insured and problems regarding the cost of insurance were already starting to show.
In 1968, a great debate regarding the high cost of insurance took place. During this time, there were many automobile lawsuits and reports say that there were certain racial and ages were denied of coverage at the standard rates. The US Congress released $1.6 million to the US Department of Transportation so that these claims could be investigated. In October of this year, the American Insurance Association called for the creation of a no-fault insurance policy wherein the insurance company would pay all the expenses regardless of who was at fault.

By 1968, the problem in the insurance industry is again in the field of auto insurance. Car insurance companies were outraged after the rejection of the 21% increase in insurance rates in New Jersey. As some insurance companies were accused of denying coverage to several motorists, several states were already considering the adoption of the no-fault system in replacement of the current tort system. The tort system, unlike the no-fault system, required that someone needs to be found at fault before a claim was paid.
It was in 1976 when a record of 24 states adopted the no-fault auto insurance. Unfortunately, the US Congress has not created a bill that would make this kind of insurance mandatory to all states. The Government Employees Insurance Company, the sixth largest car insurer in the US during this year showed financial issues as a result of capital losses incurred in 1975 and the earlier half of 1976. Fortunately, the downward trend in the US insurance industry finally caught up in 1977 and the world̢۪s largest car insurer, State Farm Insurance, announced that its earnings had now reached $129 million. According to researchers, this can be attributed to the decrease in the number of insurance claims filed. This trend was also observed with other smaller companies.

In 1980, there was a reported increase in traffic deaths as a result of the increasing popularity of small cars. During this time, 87% of claims were from small cars and there were claims that roads were made for trucks and larger vehicles. It was also recorded that over a million cars were stolen annually and automobile thieves now work for a chop shop where the cars are dismantled and the parts are sold.
At present, insurance rates are still rising and this is attributed to increased inflation. Thankfully, the no-fault insurance system is already in place and there are several states which provide government sponsored insurance.

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This Is What Lemon Law In Wisconsin Is All About

If you are not familiar with the lemon law in Wisconsin, you need to pay attention. The first thing is to know what exactly a lemon is. A lemon is a new vehicle which has the following characteristics and the warranty period of one year has not yet expired. Firstly, it is new whether bought or leased, secondly it is a truck, car or motor cycle, thirdly it must have developed serious defects or a defect before the warranty period of one year was over. Fourthly, the defects have brought about serious safety issues and decreased its overall value. Finally, a lemon is also known when it has been repaired four times without working and it has failed to serve you for 30 consecutive days.

Therefore, the lemon law in Wisconsin was formulated to help consumers who purchase defective new cars to be compensated in a legal and proper way. There are several things that a lemon owner should do to make sure that the lemon law in Wisconsin works for them fairly. They should get a repair order every time they visit the repair store whether the problem is solved or not. The repair order should show clearly what problem you reported to have with the vehicle and it should also show the dates when you took your vehicle to be repaired. Other vital documents that will help are purchase contracts and warranties. Many people are fond of carelessly placing their documents and if you want the law to work in your favor, you need concrete evidence.

You can use the Wisconsin Department of Transportation to ask for a replacement of the the lemon vehicle. You will then send the lemon law notice to the manufacturer and they have only 30 days to respond to it. The manufacturer will be required to bear all the costs that have occurred due to the lemon car. Before you take things further, use all the avenues available for you to settle the matter. You can use your manufacturer's arbitration program. Talk to a lawyer if everything fails and if your case is in order, the court must decide whether your vehicle is a lemon. You will then produce all the documents to support your case and everything must be duly presented.

If your case is genuine, you can win the case and when you win, you can get even double compensation to cover all your troubles. The lemon law in Wisconsin will have worked for you. The Dealer and Agent Section will help you resolves all the disputes you might have pertaining to vehicles and lemon vehicles. Indeed, this is a great law that safeguards the rights of customers and makes sure they are protected from unscrupulous dealers. You can find the Wisconsin lemon Law Statues in chapter 218.0171 under replacements, refunds repairs and warranties of new motor vehicles. You can read this law on the internet and get to be empowered. If you live in Wisconsin, you do not have to worry because you are well covered by the law.

Friday, August 15, 2008

State Auto Insurance - What Are The Requirements?

Virtually all states within the U.S. have laws governing the minimum amount of auto insurance coverage you must have. In the states that don't, have financial responsibility laws that state you have to be able to furnish proof of the ability to pay for both bodily and property damage resulting from an auto accident up to a certain minimum amount.

The chart below indicates the mandatory minimum requirements state by state. The second first figure is the minimum amount of coverage required for all people injured in an accident. The first figure is the limit for one individual and the third is for property damage. All figures are 1000's $.

So, taking Alaska as an example, the minimum coverage is $100,000 for all persons injured in an accident up to a limit of $50,000 for one individual and $25,000 for property damage.




Alabama 25/50/25

Alaska 50/100/25

Arizona 15/30/10

Arkansas 25/50/25

California 15/30/5

Colorado 25/50/15

Connecticut 20/40/10

Delaware 15/30/10

D.C. 25/50/10

Florida 10/20/10

Georgia 25/50/25

Hawaii 20/40/10

Idaho 25/50/15

Illinois 20/40/15

Indiana 25/50/10

Iowa 20/40/15

Kansas 25/50/10

Kentucky 25/50/10

Louisiana 10/20/10

Maine 50/100/25

Maryland 20/40/15

Massachusetts 20/40/5

Michigan 20/40/10

Minnesota 30/60/10

Mississippi 25/50/25

Missouri 25/50/10

Montana 25/50/10

Nebraska 25/50/25

Nevada 15/30/10

New Hampshire 25/50/25 Financial Responsibility only

New Jersey 15/30/10

New Mexico 25/50/10

New York 25/50/10

North Carolina 30/60/25

North Dakota 25/50/25

Ohio 12.5/25/7.5

Oklahoma 25/50/25

Oregon 25/50/10

Pennsylvania 15/30/5

Rhode Island 25/50/25

South Carolina 25/50/25

South Dakota 25/50/25

Tennessee 25/50/10

Texas 25/50/25

Utah 25/50/15

Vermont 25/50/10

Virginia 25/50/20

Washington 25/50/10

West Virginia 20/40/10

Wisconsin 25/50/10 Financial Responsibility only

Wyoming 25/50/20



It must be stressed that these figures are the minimum required by law. It is generally recognized that more realistic figures would be $300,000 bodily injury protection per accident and $100,000 per person.

Other options are available to increase your coverage. These include -

Uninsured Motorist Coverage
This coverage will pay you for bodily injury and property damage that you suffer as a result of an accident caused by an uninsured driver.

Underinsured Motorist Coverage
This coverage pays you for bodily injury and property damage that you suffer as a result of an accident caused by a driver who has insurance but whose coverage is less than your uninsured motorist coverage.

Personal Injury Protection (PIP)
This coverage (sometimes known as "no-fault" coverage) is for injuries that you and others may sustain in an auto accident irrespective of who caused the accident. It covers the cost of hospital and medical expenses incurred in treating injuries and other incidental expenses such as lost wages.

Collision Coverage
Coverage to pay for damages caused to your vehicle when involved in a collision with another vehicle or object.

Comprehensive Coverage
This pays for damage to your vehicle that is not the result of a collision, such as fire, theft, vandalism and flooding.

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