The benefits of No-Fault insurance

What exactly does no-fault insurance cover?

Traditional car insurance policies let you take out legal responsibility coverage to reimburse for bodily injury claims from anyone injured in an accident in which you have been deemed at fault. With no-fault car insurance, the bodily injury coverage supplied by your policy extends to you. What about medical bills and other losses caused by the accident in case of no-fault insurance. The Personal Injury Protection component of no-fault car insurance guarantees not only that your hospital bills are paid, but that you’re also covered for any related losses, like lost incomes, psychological therapy or long-term kinetic-therapy. So Under current no-fault laws, motorists may sue for harsh injuries and for pain and suffering only if the case meets certain circumstances. These conditions, known as a threshold, relate to the severity of injury. They may be expressed in verbal terms or in dollar amounts of medical bills, a monetary threshold. Some laws also include minimum requirements for the days of disability incurred as a result of the accident.

So the benefit of no-fault insurance is obvious. As it is a type of car insurance in which an insurance provider covers damages occurred to its customer in an accident, not considering who’s held responsible. Essentially to it, it has one more benefit for drivers, it reduces the need for a driver to go after another party’s insurance company in order to be reimbursed for damages that the other person caused.

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Right hand drive is banned in Russia, Belarus and Kazakhstan

From January 2015 right hand drive cars cannot be imported to the territory of the following countries: Russia, Belarus and Kazakhstan. In all countries of the Custom Union cars will be completed and produced with a similar package of documents, including one type of insurance and car passport. Also the unified standards will be introduced for the expertise laboratories and testing facilities, employment verification and testing of vehicles. Meanwhile, our interlocutors in one of the insurance companies found it difficult to comment on the situation of creating the common insurance zone. According to world statistics in the world every 30 seconds someone dies as a result of the accident. Per year, the number of victims reaches 1.2 million. From 20 up to 50 million of the drivers receive a simple injury.

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Tricks to make you spend more on car insurance

Car insurers are still tricking customers out of extra cash by involving them into costlier policies, hiding fees and charges in small print and automatically adding unwanted extras. Fees and responsibilities are often hidden away and policy documents are generally far too long for customers to realistically challenge. A number of insurers such as AA and Allianz are still automatically signing customers up for highly commercial "add-on" products that are not clearly presented or explained. Add-ons are insurance products sold together with the primary policy. Some car insurers are believed to make a third of their profits from add-ons alone. Research by consumer group Fairer Finance found poor practice is still widespread in the sector. A third of insurers still organize pay-monthly policies for customers who have come from comparison websites when they have exactly asked to pay yearly.

Customers who do not carefully check that their choices have been taken are likely to end up paying considerably more for their cover. Firms charge more when premiums are paid over 12 months rather than annually in a lump sum. In the long run, it's in insurers' interest to ensure that their clients understand what they're buying. But too many insurers find it too hard to struggle the opportunity to try to make a quick extra buck.

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Colors of the cars frequently involved in accidents

Experts of one of the leading insurance companies in Russia have identified the frequent color of emergency vehicles.

A company’s survey showed that orange, yellow, brown and purple cars are rarely involved in crashes. Thus, the total number of yellow machines that have insurance, there is only 1% of insurance claim, for the Orange cars a bit more — 8%.

More often you can see in crashes the cars of grey/silver and black colors. Owners of such cars are turning to the insurance company 20% more often than others. This study has allowed insurers to plan a special program encouraging the car owners to buy cars with safer colors, in terms of accident. 

This attention to the color of the cars is due to the fact that the cars with bright colors are more noticeable on the road. While the cars of gray and black colors are very hard visible, especially at dusk. Very often cars with red shades get in accidents (the total number of insurance claims for accidents is 62%) it is explained by the fact that the red cars are mainly chosen by young drivers with little driving experience.

Experts say that the color of the car and the nature of the driver are closely linked. The car’s color determines the manner of driving. So, drivers who choose black cars and red, drive more aggressively. This is confirmed by the fact that most of the sports car has a black or red color. Drivers of blue and green cars drive more relaxed, so they belong to the group of least risk for traffic accidents.

A white car also shows a tough character of the owner. The white color is easier to recognize on the road at night. But among the stolen cars white ones are more usually met, because it is easier to repaint them.

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Benefits Of Cheap Car Insurance

Auto insurance offers protection to your car, you and your passengers. Top insurance companies offer policies based on the car and the driving history of the user. They also calculate the age of the client's car. An old car does not need a full coverage policy. A good driving record allows the driver to reduce the premium payment. Cheap auto insurance offers wide benefits. Cheap insurance covers the necessary elements of the car, in case of an accident. Unlike the regular policies offer the option to choose specific elements for coverage, based on their driving habit. Many people drive very attentive and they generally do not pay any harm to other drivers. Such drivers enjoy more protection from other not so attentive drivers. That is why such kind of drivers usually choose the policy offering protection to the important elements of their car such as a motor and the body. It is very helpful to choose a policy that protects the driver and the vehicle together. If the buyer of an insurance policy is a multi-car owner, covering all the vehicles in a single policy also decreases the cost of the policy. Insurance companies offer discounts for such cases.

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History of car insurance

AS you probably know the widespread use of the automobile in the cities began only after the First World War. Cars were comparatively fast and dangerous by that time, but there was still no obligatory form of car insurance anywhere in the world. This meant that damaged cars and injured victims often didn’t get any compensation in an accident, and drivers often had significant costs because of the damage to their cars and health.

A required car insurance system was first introduced in the Great Britain with the Road Traffic Act 1930. This document said that all vehicle owners and drivers had to be insured for their responsibility for damage or death to third parties while their vehicle was being used on a public road. Germany passed similar legislation in 1939.

The idea of an obligatory insurance came to USA much more earlier than in UK though in 1925 law according the compulsory insurance for all types of vehicles was only accepted in Massachusetts . Gradually it spread to all of America. 

First talks about the car insurance in Russia were already in 1924, but for the ordinary citizens of that time the automobile was a luxury, rather than a means of transportation. The talks related auto insurance was restarted again only in 1960s, and in 1991 the car insurance became obligatory.

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Dangerous drivers' habits according to insurers

A research, conducted by the largest insurance company AXA, in frames of which 450 drivers were questioned, showed the most dangerous habits, which can bring the drivers to an accident. 

The majority of respondents (62%) of drivers confessed that in recent years they have become less likely to feel safe on the roads. As the main reason for such a situation, the drivers named aggressive driving (72 %).

The drivers are noted and the various factors and habits can also affect the road safety. On the first place was an excess of permitted level of alcohol in the blood. On the next places of the "most dangerous habits" were: writing SMS while driving, and the third is checking phone or Tablet for messages or e-mails while driving!

Interesting, that only 39% of respondents mentioned the use phones. Other popular violations for which the respondents had admitted themselves guilty are the exceeding of the speed limit by 10km/h and driving under the yellow traffic light signal (50% of respondents).

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