What Is Travel Accident and Car Insurance

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					     What Is Travel Accident
      and Car Insurance?
     Travel accident insurance provides monetary compensation to your family or beneficiaries in case you die in an accident while you are traveling.

            Inclusions
           o                 Travel insurance pays for fatalities due to an auto or boating accident, a fall, drowning or plane crash. An injured
                 person must die of her injuries within three months of the accident for the policy to be cashed in, according to the Interstate
                 Insurance Product Regulation Commission. You may add additional coverage for death due to terrorism.

            Exclusions
           o                 Travel accident insurance always list exclusions. Death from suicide or illegal activities forfeits the payments. Some
                 insurance companies will decline covering individuals engaged in high-risk professions, such as daredevil occupations or hobbies.

            Cost and Disbursement
           o                  You can choose quarterly or annual coverage up to $1 million for a fee between $30 and $80 for each $100,000 of
                 protection. For business travel, your travel insurance may pay up to 10 times your annual income.

      Accidents & Car Insurance

     Car crashes can be financially devastating if you don't have insurance.
     There were 10.2 million car accidents in 2008, according to the U.S. Census Bureau. If you were involved in one of those accidents, chances
     are your insurance company covered certain damages. Car insurance provides peace of mind to drivers and passengers alike, because the cost
     to repair damage to a car can range from a few hundred dollars to a few thousand dollars. Some insurance also covers medical damages.
     Insurance isn't free, however, and multiple accidents may cause your yearly premium to more than double.

1.         Rates
           o                  If you cause an accident, your insurance rate will generally increase. It's impossible to estimate how much your
                 premium will go up, because the insurance takes into account your prior driving record. If you had a clean driving record for the past
                 two or three years before an accident that you caused, expect your rates to go up anywhere from 5 to 35 percent. In 2008. for
                 example, AAA motorist insurance rates increased 30 percent for people who caused one accident, while State Farm was more
                 lenient at 10 percent, according to Insure.com.
                 Your rates will almost never go up if you were involved in accident you didn't cause, unless you are involved in several accidents.
                 However, Carinsurancerates.com states that insurance companies may increase your premium after a no-fault accident if you have
         had citations or were involved in minor accidents in the past year. Some insurance companies offer accident forgiveness, which
         means your rates do not go up after one accident.

2.   Types of Insurance
     o                 The type of coverage your purchase determines who and what is covered in the case of an accident. All states with the
         exception of New Hampshire required motorists to purchase at least liability insurance as late as June 2010. Liability insurance
         covers damage to other cars or people, but it does not cover damages to your vehicle or injuries to you. Conversely, collision covers
         damages to your car in an accident and those of other cars, while comprehensive covers your car in an accident and unforeseen
         damages, such as theft or a falling tree. If you opt to finance your vehicle, expect to pay for comprehensive coverage, per the rules
         of almost all lenders. Other types of coverage exist too, such as personal injury protection, but they are generally not mandatory.

3.   Not Having Insurance
     o                Simply driving without insurance is enough for a state to temporarily revoke your license; it doesn't matter if you're
         involved in an accident or not. In addition to the possibility of the state suspending your license, you will also incur fines of at least
         $100. If you are involved in an accident, the other driver may sue you for damages. If you lose your license due to a lack of car
         insurance, you may also face jail time if you continue to drive and are caught.

4.   Cost
     o                Car insurance varies dramatically from person to person and car to car. If you're young, you're likely going to pay more
         for an insurance policy than someone who is older and more experienced behind the wheel. If you have a clean driving record,
         insurance companies will reward you with a lower rate. Drive a brand new sports car, and it really doesn't matter if you have a clean
         driving record or not; fast, sporty cars pose a higher risk than other cars. The average yearly premium for a car was $1,544 as of
         March 2011, according to Insure.com. You can use that figure as a rough estimate of what you'll pay, but you may pay hundreds
         more or less depending on the type of car you drive and your driving record.

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