Who Does A Typical Auto Insurance Policy Cover?

Almost all vehicle owners have to pay for car insurance. The problem is that many of these people don’t really understand who their policy will cover. Drivers can be sure that anybody named on a policy is covered for the car that the policy was purchased for. However, policy owners may not be sure what happens if somebody borrows their car or if they rent. In other words, they don’t know if the vehicle or the drivers are covered.

This isn’t totally surprising because states have their own regulations, policies may vary, and a lot of published advice seems pretty contradictory. This article can’t replace the advice from a local car insurance agent or state insurance department, but it will cover some rules about who is typically covered by an auto insurance policy.

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Is a Car Insurance Policy Attached to a Driver or a Car?
Typically, car insurance is attached to the car, but there are some exceptions. For example, a vehicle owner is usually free to let a neighbor or coworker borrow a car once in awhile. If the borrowers are licensed drivers, they should still be covered. If a coworker wants to use the car for business, that particular use might not be covered by a personal auto insurance policy.

An insurer won’t extend coverage to members of the family that live in the same house. Lots of parents would love to skip naming teen drivers on their insurance policies. If those young drivers aren’t named on the policy, an auto insurance company might have the right to refuse to pay the claim. Neglecting to mention that a son or daughter just got a license and is using one of the family vehicles is a very bad idea.

The good news is that auto insurance sometimes follows the driver too. Most policies will cover insured drivers if they rent a car for a few days. Typically, the insurance that covers the rental is the same as the coverage on the owned vehicle. People who only carry liability insurance on an older car might want to buy extra coverage when they rent because they won’t have collision or comprehensive insurance, and renters are usually responsible for damage to the car that they rent.

How to Learn More About Who an Auto Policy Covers?
The exact rules about who is covered by an auto policy might vary by state and insurance company. People who plan to lend out their own car or rent another car would probably be wise to call a local insurance agent and make sure. It’s always better to make certain that a car and a driver are properly covered before an accident and not afterwards.

Why Consider Medicare Supplement Insurance Over Medicare Advantage Plans?

Recently, the Kaiser Family Foundation predicted that somewhat over one out of five Medicare beneficiaries would select a Medicare supplement plan in the coming year. At the same time, almost 30 percent will choose a Medicare Advantage plan. Supplements used to be more popular, and it’s fairly obvious that Medicare Advantage has gained in popularity at the expense of supplements. Given a choice between Medicare supplements and Medicare Advantage, why do some people still choose a supplement?
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It’s fairly easy to account for the popularity of Medicare Advantage plans. For one thing, many come with no additional premium. Even those that do have a premium are usually modestly priced. They might also include prescription benefits. Alternatively, supplements always have a premium and don’t include Part D prescription coverage. People who choose a supplement usually also have to purchase a Part D plan.

Why Consider Medicare Supplement Insurance?
There are many different standardized levels of supplements. They are assigned letter names from A through N. The most comprehensive options, Plan C and Plan F, are the most expensive. The interesting thing is that they are also the most popular. Most people who decide to buy supplements are also willing to buy the most expensive supplements.

When comparing people who decide to have a supplement instead Medicare Advantage, it seems clear that supplement buyers are less concerned about the cost of premiums. It’s very important to realize that the most robust plan levels can also reduce or eliminate concerns about out-of-pocket costs. For beneficiaries who decide to buy supplements, benefits seem more important than premiums. Most Medicare Advantage plans still have deductibles and copays that leave their members vulnerable to out-of-pocket costs.

Also, most Medicare Advantage plans rely upon plan networks to control health costs. People who buy a supplement usually don’t have to worry about HMO or PPO restrictions. Supplement owners can pick any doctor who takes Medicare, don’t need referrals to get to a specialist, and are likely to have many more medical providers to choose from.

Supplements work all over the United States. Some even provide emergency coverage in foreign countries. Medicare Advantage plan members are not likely to enjoy these benefits. People who travel a lot are more likely to enjoy the flexibility of a supplement.

Is a Medicare Supplement the Best Choice?
Both of these types of Medicare health insurance policies have advantages and disadvantages. The right choice is likely to depend upon an individual’s health, budget, and preferences. It’s probably a good idea for beneficiaries to compare options in their own local area to see which choice will be more likely to satisfy their own unique needs.