Commuter’s Breakdown Cover

If you use your vehicle to commute to work, one of the most valuable things you can have is a good breakdown cover. Some insurance policies add this as part of your normal liability policy, but often you need to purchase breakdown insurance separately.

The Kind of Driving You Do

Insurers take the kind of driving you do into consideration when issuing a policy. If you normally use your car to visit friends and family or to make the occasional trip to the grocery store, then you are a social driver. You might not need the sort of coverage that would allow you to drive across Europe, nor do you need the extensive coverage required by someone who will drive their car every day.

If you are a commuter, however, you will need the sort of coverage that will help you get out of the driveway and take care of any mishaps along the way. Your job might be riding on your ability to arrive punctually and reliably each day. So you will need a more intensive sort of coverage than the driver who only uses their car or truck occasionally.

Insurance for Commuters

Commuters might typically need two types of breakdown insurance. They will, of course, want roadside assistance. It is the quickest way to get help if you have a flat, a belt breaks or some other minor but debilitating event occurs while you are on your way to or home from work.

A good breakdown policy will also have provision for towing to a nearby repair facility if your vehicle has developed a problem that will take more than thirty minutes to repair. Thirty minutes is the typical time allotted for roadside repairs.

The third part of a good commuter insurance policy is At-home assistance. It might sound a little crazy, but one of the frequent locations for automotive difficulties is right in your own driveway. Your at-home problems can range from locking your keys inside the car or having a rundown battery to having a major mechanical issue come to light just as you are leaving home. Many ordinary breakdown policies do not cover if you are not at least ten miles away from your residence.

How Commuting is Defined

There are two types of commuter. There is the person who drives from home to their place of work and back again each day. The other type of commuter is one who drives their vehicle to a commuter parking lot, leaves it there for the day, and takes some sort of public transport the rest of the way to work. In both cases, a reliable personal vehicle takes the guesswork out of meeting your schedule. Whether you are driving directly to the location where you will work, or whether you are catching a plane, train or bus, punctuality is definitely going to count.

Breakdown Coverage Can Help

While there are no guarantees with mechanical things like cars, commuter breakdown insurance can make the difference between being thirty minutes late or missing half a day of work or more. Drive-way or roadside repairs often can be managed in thirty minutes or less from the time the mechanic arrives to help. By contrast, if you must wait for a towing truck, then wait for a busy mechanic to diagnose the problem and then wait some more for a repair, you almost might as well call in sick for the day. The good news with breakdown insurance is that it often comes with backup transportation as well as a mobile mechanic with a van full of parts.

A Look at 125% Home Equity Loans

The origin of the 125 percent home equity loan was the ever increasing demand for borrowing. As the name implies, this loan will grant the borrower the right to borrow up to 125 percent of his home’s value. Let’s say, for example, that one’s home is worth $100,000 and his mortgages also total $100,000; the 125 percent loan, in this case, would allow him to borrow an additional $25,000. Before applying for one of these loans, there are four important things to keep in mind.

What is a 125 Home Equity Loan?

One of the primary reasons that people end up choosing this type of loan is because the process is easier than refinancing and has fewer attached fees. This type of loan will create a second mortgage on one’s home, but it is a strategy that can be used for paying down high interest debt. The interest rate on this type of loan is usually much lower than the interest rate on credit cards.


What Type of Situation Calls for Using This Loan?

If a person finds himself trapped in a corner financially due to an unforeseen bill or some other severe adversity, this loan may be a good choice for him as an alternative to losing his valuable home. However, before applying for this type of loan one needs to lay out a detailed and organized plan for paying back the loan.

The easiest way to find one of these loans is to call the banks in the person’s area and ask about 125 percent home equity loans. Most of the institutions around probably do not. In reality, one will find that it is simpler and less time consuming to secure one of these loans from an online bank. If one uses an online bank, it is unlikely that he will ever actually meet the lender face to face.

Risks Associated with 125 Home Equity Loans

Before undertaking one of these loans, be sure to acquaint oneself with its riskiness.One of the most important reasons to not get this loan is that it will make selling the borrowers house very difficult. Furthermore, one will not be able to take a tax deduction against the 125% home equity loan if it ends up surpassing the market value of his home. However, this may still be a good option for a person if he can use this short term debt to improve his financial standing.

California Fair Claims Settlement Practices Regulations

Here is Why You Should Care About Educating Yourself Before Settling Your Insurance Claim in California

If you or anyone you know has had to deal with insurance companies, you know it could be a frustrating process. Sometimes people go into negotiating claims with their insurance companies without knowing basic procedures. What kind of guidelines do the insurers have to follow when settling a claim? Have you ever settled a claim and felt that you got taken? This article will help educate California insurance policy holders of certain regulations which were enacted to encourage insurance companies to settle claims in an ethical fashion.

What Are and Why Were the California Fair Debt Settlement Practices Regulations Implemented?

The California Fair Claims Settlement Practices Regulations were established to implement certain standards for the variety of Unfair Claims Practices set forth in California Insurance Code Section 790.03(h). Moreover, the legislature enacted these laws in response to California Supreme Court holding in Moradi-Shalal v. Fireman’s Fund, 46 Cal.3d 287 (1988), which established that California Insurance Code Section 790.03(h) did not give a private right of action to claimants who are third parties. Instead, the law provided that an administrative remedy be enforced by the Insurance Commission pursuant to already established regulations.


Who Does the California Insurance Regulations Apply To?

The California Fair Claims Settlement Regulations were not intended to provide definitions of all fair claims practices. Instead, the laws delineate specific minimum standards for claims settlements.

The Regulations apply to all claims, with the exception of worker’s compensation claims, healthcare malpractice liability insurance and self funded/self insured ERISA plans. Moreover, they apply to any entity that transacts the business of insurance in the state of California, all insurers who are admitted, as well as, non admitted insurers, with the exception of penalties and inspection. The Regulations also apply to first and third party claimants.

The Regulations Do Not Apply to Reinsureres

Essentially, the Regulations were created with the intention to require insurers to use and apply specific basic claim handling procedures to first and third party claims for first and third party claimants. However, the Regulations do not apply to reinsurers .

Make Yourself Aware of the Claim Handling Duties of Insurance Companies In California

Every insurance policyholder should make themselves aware of these laws. It is essential knowledge to have handy in your arsenal to give you an upper hand in settling a claim. Going into a settlement without knowledge of the Regulations is like going into a ring with Mike Tyson – without training and without a referee. Knowledge is power and information is the most valuable commodity. Arm yourself with the knowledge of the Regulations and deflect yourself from the possibility of becoming a victim of unethical claims practices. However, this is not legal advice and I highly recommend anyone with a claim to get a lawyer who you feel is best suited to help handle your claims. Good luck to you!