January 2013 - Bradford PA Insurance - Williams Insurance Agency

Reasons why your Pennsylvania auto insurance can be cancelled

January 31, 2013 in auto insurance, auto insurance bradford, auto insurance bradford pa, auto insurance policy, bradford, Bradford PA, bradford pennsylvania

There are very many people who have had their Pa auto insurance policies cancelled and do not know the reason as to why this is so. However, in the state of Pennsylvania, the auto insurance company is required by law to notify you when they are cancelling your insurance policy. Most of the time, they will send you a letter to inform you of the reason as to why this is happening. There are then steps you can take to try and convince them not to terminate your policy. There are very many reasons as to why the insurance company might deem it fit to terminate your policy. In fact, the state of the Pennsylvania allows the auto insurance company to terminate any policy if they deem fit.

One of the reasons why your policy is cancelled can be due to making so many claims. Claims are contacts that you make after an accident so that the insurance policy will give you the money to fix the car. You have to realize that insurance is a business, so if you get into too many accidents, you will give them losses. They will therefore deem it fit, according to their business nature to terminate your policy.

Another reason as to why your policy might be cancelled in the state of Pennsylvania is if you provided wrong information when getting the policy. When you enter an auto insurance company, there are some documents that you will need to present before they tell you the insurance cover that they can provide. If you take a faked document and it is later noticed, your policy will be cancelled. This is such a big deal that you might even go to jail for presenting forged documents.

The third reason as to why your policy might be cancelled is that you are not paying premiums. This is the money you pay to the auto insurance company every month. If you are going to be late in paying them, you should inform them. Also ensure that you are not behind so much that catching up is impossible. If this happens, the auto insurance company will definitely cancel your auto insurance policy.

Having your Pa auto insurance policy cancelled is very expensive. You will not be able to drive your vehicle since you will not have auto insurance and getting a new one will be difficult. This is so because the reasons as to why your initial contract was cancelled will be provided to PENNDOT and therefore all other auto insurance companies can access it.

How does my driving record affect my Pa car insurance policy?

January 24, 2013 in auto insurance, auto insurance bradford, auto insurance bradford pa, auto insurance rates, auto insurance rates bradford, bradford, Bradford PA, bradford pennsylvania, car insurance policy

The state of Pennsylvania is one of the toughest states when it comes to a car insurance policy. The state laws governing the rules of insurance are so strict that only small mistakes can land anyone into trouble. Most people have been quoted saying that the auto insurance rules of the state of Pennsylvania favor the auto insurance companies more than the people. One common thing that affects many insurance policies in this state is driving record.

If you are a resident of this state, you might have noticed that your Pa auto insurance rates get much more expensive if you have a not so good driving record. The reason for this is that you are considered a risk. Auto insurance is a must have for any car owner in the state of Pennsylvania. Any auto insurance company you go to will check your driving license and even the points for tickets in order to give you the right premium package.

Good driving records will show that you are responsible and therefore are not likely to get involved in accidents. However, bad records show that you are an irresponsible driver and therefore prone to accidents. This is why you get higher premiums.

Too many points on your driving license might even make the company cancel the policy. In Pennsylvania, traffic police can give points for reckless driving or any other bad driving that they note. If you are given a ticket, your auto insurance company will know about it. If this happens often, they will be forced to cancel the policy. This is legal according to the law.

Poor driving is not the only factor that affects the piece of premiums in Pennsylvania. Even the model of your car will determine the amount of money you pay to your auto insurance company. This is so because a big car will get less damage than a small car. So the company will consider the car size, model and even the speed of the car. Cars that can go at high speed have expensive premiums than those that are slower.

In order to ensure that you have an affordable policy, ensure that you are a good driver. This is very important for anyone in Pennsylvania considering that the state has so many rules against poor driving. You might feel pleasure running a red light but the consequences of it will go way past just a ticket. Therefore try as much as possible to be on the right side of the law when on the road.

My boss asked me to run an errand for his business; will my Pa car insurance still pay if I’m using the car for his business?

January 5, 2013 in bodily injury, bodily injury insurance, bradford, Bradford PA, bradford pennsylvania, collision, comprehensive, Employer Non-Owned Car Liability Coverage, Hired Auto Insurance, liability protection, Non-Owned Auto insurance, personal auto insurance

If you have access to a company car in your job, then it will be insured by your employer and you don’t need to worry about being covered in an accident. However, many companies expect employees to use their own cars when they’re conducting company business. In this situation, a number of questions arise regarding Pa. car insurance. When does the company’s policy cover you and when will you need to depend on your personal auto insurance policy?

Most large corporations have commercial policies that cover employees while they’re traveling. If you’re driving your own car on company business and you get into an accident, you may have to make a claim on your own policy. However, it’s also possible that your employer’s insurance carrier will cover the accident.

If your employer has you covered, make sure you understand how the process will work in the event of an accident. Find out who to call if there’s an accident, and carry that information with you while on company business.

The best way to avoid problems that can occur when using your vehicle for business errands is to make sure that your employer carries Employer Non-Owned Car Liability Coverage (ENOL) and Hired Auto Insurance. This is a type of commercial/business auto liability insurance. If you are driving your car for company business and cause an accident, this coverage will help pay for damage and injury to the other driver and vehicle.

Employer Non-owned Vehicle Coverage

Non-owned (that is, not owned by the business or the employer) auto liability coverage is usually included in commercial insurance packages or general liability insurance policies. It provides 3rd party liability (bodily injury and property damage) coverage for employees who are driving their personal cars on company business. A common mistake is in thinking that this policy would be the primary coverage should you have an accident while on company business. In fact, this coverage kicks in only after your own personal auto insurance is exhausted or your personal insurance company refuses to cover the claim.

As a rule, automobile coverage follows the automobile. This means that in the event of an accident, the primary coverage resides with the vehicle owner. Non-owned auto liability coverage is excess coverage, over and above your personal coverage. This also means that physical damage (comprehensive and collision) to the employee’s car is the sole responsibility of the vehicle owner. There is no means for a business to purchase physical damage coverage on a non-owned automobile.

Non-Owned Vehicle Liability Examples

To illustrate this coverage, consider the following scenarios:

Scenario 1: On the way to drop off company packages at the post office, a company employee runs a red light, hitting a second vehicle. The employee’s car is damaged. The accident causes damage to the second vehicle and the driver of the second automobile is injured.

  • Coverage: The employee’s auto policy will cover the damage to his own vehicle. The employee’s auto policy will pay for the damage to the 2nd vehicle and for bodily injury of the driver of that vehicle up to the maximum of his liability limits. After the employee’s limits are exhausted, the company’s non-owned vehicle policy will kick in. The employer’s policy will pick up the excess expenses over and above the employee’s policy limits for damage to the second vehicle, and for bodily injury to the driver of that vehicle. No employer coverage is available for the excess damage to the employee’s own vehicle.

Scenario 2: When returning from a company-related errand, an employee hits a column in a parking garage at the business’s headquarters and damages his own vehicle.

  • Coverage: The employee’s personal insurance policy pays 100% of the claim. The company’s non-owned vehicle policy will not take effect.

Scenario 3: You’re at a work site when you realize you’re running short on hex bolts. You send your employee, Joe, to the hardware store to pick up some extras to help get the job done. On his way to the store, Joe rear ends the car in front of him. The other car’s bumper is damaged, and the other driver has a sprained wrist. Since Joe was driving for work, Joe’s personal auto insurance can refuse to pay the bill. Fortunately, the company carries Non-Owned Auto insurance with a $300,000 combined single limit.

  • Coverage: The Non-Owned Auto insurance would pay the following: $1,500 medical bill for the other driver’s wrist X-ray; $1,000 bill to replace the other car’s bumper. Since the total expenses are well below the $300,000 combined single limit, the expenses would be completely covered by the policy.

Hired Auto Insurance

Hired Auto Insurance provides liability protection when driving a vehicle that is not owned or registered to the business or employee, such as a rental car. If the vehicle is rented for less than 30 days, Hired Auto insurance will protect the rented vehicle.