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Lawyers

2009-11-20T16:40:00.000-08:00

A lawyer, according to Black's Law Dictionary, is "a person learned in the law; as an attorney, counsel or solicitor; a person licensed to practice law."[1] Law is the system of rules of conduct established by the sovereign government of a society to correct wrongs, maintain stability, and deliver justice. Working as a lawyer involves the practical application of abstract legal theories and knowledge to solve specific individualized problems, or to advance the interests of those who retain (i.e., hire) lawyers to perform legal services.

The role of the lawyer varies significantly across legal jurisdictions, and so it can be treated here in only the most general terms.[2][3] More information is available in country-specific articles (see below).

Terminology

In practice, legal jurisdictions exercise their right to determine who is recognized as being a lawyer; as a result, the meaning of the term "lawyer" may vary from place to place.[4]

* In New Zealand and Australia the word "lawyer" is used to refer to both barristers and solicitors (whether in private practice or practising as corporate in-house counsel).
* In Canada, the word "lawyer" only refers to individuals who have been called to the bar or have qualified as civil law notaries in the province of Quebec. Common law lawyers in Canada may also be known as "barristers and solicitors", but should not be referred to as "attorneys", since that term has a different meaning in Canadian usage. However, in Quebec, civil law advocates (or avocats in French) often call themselves "attorney" and sometimes "barrister and solicitor".
* In England and Wales, "lawyer" is used loosely to refer to a broad variety of law-trained persons. It includes practitioners such as barristers, solicitors, legal executives and licensed conveyancers; and people who are involved with the law but do not practise it on behalf of individual clients, such as judges, court clerks, and drafters of legislation.
* In India, the term "lawyer" is often colloquially used, but the official term is "advocate" as prescribed under the Advocates Act, 1961.[5]
* In Scotland, the word "lawyer" refers to a more specific group of legally trained people. It specifically includes advocates and solicitors. In a generic sense, it may also include judges and law-trained support staff.
* In the United States, the term generally refers to attorneys who may practice law; it is never used to refer to patent agents[6] or paralegals.[7]
* Other nations tend to have comparable terms for the analogous concept.

[edit] Responsibilities

In most countries, particularly civil law countries, there has been a tradition of giving many legal tasks to a variety of civil law notaries, clerks, and scriveners.[8][9] These countries do not have "lawyers" in the American sense, insofar as that term refers to a single type of general-purpose legal services provider;[10] rather, their legal professions consist of a large number of different kinds of law-trained persons, known as jurists, of which only some are advocates who are licensed to practice in the courts.[11][12][13] It is difficult to formulate accurate generalizations that cover all the countries with multiple legal professions, because each country has traditionally had its own peculiar method of dividing up legal work among all its different types of legal professionals.[14]

Notably, England, the mother of the common law jurisdictions, emerged from the Dark Ages with similar complexity in its legal professions, but then evolved by the 19th century to a single dichotomy between barristers and solicitors. An equivalent dichotomy developed between advocates and procurators in some civil law countries, though these two types did not always monopolize the practice of law as much as barristers and solicitors, in that they always coexisted with civil law notaries.[15][16][17]

Several countries that originally had two or more legal professions have since fused or united their professions into a single type of lawyer.[18][19][20][21] Most countries in this category are common law countries, though France, a civil law country, merged together its jurists in 1990 and 1991 in response to Anglo-American competition.[22] In countries with fused professions, a lawyer is usually permitted to carry out all or nearly all the responsibilities listed below.
[edit] Oral argument in the courts

Arguing a client's case before a judge or jury in a court of law is the traditional province of the barrister in England, and of advocates in some civil law jurisdictions.[23] However, the boundary between barristers and solicitors has evolved. In England today, the barrister monopoly covers only appellate courts, and barristers must compete directly with solicitors in many trial courts.[24] In countries like the United States that have fused legal professions, there are trial lawyers who specialize in trying cases in court, but trial lawyers do not have a de jure monopoly like barristers.

In some countries, litigants have the option of arguing pro se, or on their own behalf. It is common for litigants to appear unrepresented before certain courts like small claims courts; indeed, many such courts do not allow lawyers to speak for their clients, in an effort to save money for all participants in a small case.[25] In other countries, like Venezuela, no one may appear before a judge unless represented by a lawyer.[26] The advantage of the latter regime is that lawyers are familiar with the court's customs and procedures, and make the legal system more efficient for all involved. Unrepresented parties often damage their own credibility or slow the court down as a result of their inexperience.[27][28]
[edit] Research and drafting of court papers

Often, lawyers brief a court in writing on the issues in a case before the issues can be orally argued. They may have to perform extensive research into relevant facts and law while drafting legal papers and preparing for oral argument.

In England, the usual division of labour is that a solicitor will obtain the facts of the case from the client and then brief a barrister (usually in writing).[29] The barrister then researches and drafts the necessary court pleadings (which will be filed and served by the solicitor) and orally argues the case.[30]

In Spain, the procurator merely signs and presents the papers to the court, but it is the advocate who drafts the papers and argues the case.[31]

In some countries, like Japan, a scrivener or clerk may fill out court forms and draft simple papers for lay persons who cannot afford or do not need attorneys, and advise them on how to manage and argue their own cases.[32]
[edit] Advocacy (written and oral) in administrative hearings

In most developed countries, the legislature has granted original jurisdiction over highly technical matters to executive branch administrative agencies which oversee such things. As a result, some lawyers have become specialists in administrative law. In a few countries, there is a special category of jurists with a monopoly over this form of advocacy; for example, France formerly had conseils juridiques (who were merged into the main legal profession in 1991).[33] In other countries, like the United States, lawyers have been effectively barred by statute from certain types of administrative hearings in order to preserve their informality.[34]
[edit] Client intake and counseling (with regard to pending litigation)

An important aspect of a lawyer's job is developing and managing relationships with clients (or the client's employees, if the lawyer works in-house for a government or corporation). The client-lawyer relationship often begins with an intake interview where the lawyer gets to know the client personally, discovers the facts of the client's case, clarifies what the client wants to accomplish, shapes the client's expectations as to what actually can be accomplished, begins to develop various claims or defenses, and explains his or her fees to the client.[35][36]

In England, only solicitors were traditionally in direct contact with the client.[37] The solicitor retained a barrister if one was necessary and acted as an intermediary between the barrister and the client.[38] In most cases a barrister would be obliged, under what is known as the "cab rank rule", to accept instructions for a case in an area in which they held themselves out as practising, at a court at which they normally appeared and at their usual rates.[39][40]
[edit] Legal advice
Main article: Legal advice

Legal advice is the application of abstract principles of law to the concrete facts of the client's case in order to advise the client about what they should do next. In many countries, only a properly licensed lawyer may provide legal advice to clients for good consideration, even if no lawsuit is contemplated or is in progress.[41][42][43] Therefore, even conveyancers and corporate in-house counsel must first get a license to practice, though they may actually spend very little of their careers in court. Failure to obey such a rule is the crime of unauthorized practice of law.[44]

In other countries, jurists who hold law degrees are allowed to provide legal advice to individuals or to corporations, and it is irrelevant if they lack a license and cannot appear in court.[45][46] Some countries go further; in England and Wales, there is no general prohibition on the giving of legal advice.[47] Sometimes civil law notaries are allowed to give legal advice, as in Belgium.[48] In many countries, non-jurist accountants may provide what is technically legal advice in tax and accounting matters.[49]
[edit] Protecting intellectual property

In virtually all countries, patents, trademarks, industrial designs and other forms of intellectual property must be formally registered with a government agency in order to receive maximum protection under the law. The division of such work among lawyers, licensed non-lawyer jurists/agents, and ordinary clerks or scriveners varies greatly from one country to the next.[32][50]
[edit] Negotiating and drafting contracts

In some countries, the negotiating and drafting of contracts is considered to be similar to the provision of legal advice, so that it is subject to the licensing requirement explained above.[51] In others, jurists or notaries may negotiate or draft contracts.[52]

Lawyers in some civil law countries traditionally deprecated "transactional law" or "business law" as beneath them. French law firms developed transactional departments only in the 1990s when they started to lose business to international firms based in the United States and the United Kingdom (where solicitors have always done transactional work).[53]
[edit] Conveyancing

Conveyancing is the drafting of the documents necessary for the transfer of real property, such as deeds and mortgages. In some jurisdictions, all real estate transactions must be carried out by a lawyer (or a solicitor where that distinction still exists).[54] Such a monopoly is quite valuable from the lawyer's point of view; historically, conveyancing accounted for about half of English solicitors' income (though this has since changed),[55] and a 1978 study showed that conveyancing "accounts for as much as 80 percent of solicitor-client contact in New South Wales."[56] In most common law jurisdictions outside of the United States, this monopoly arose from an 1804 law[57] that was introduced by William Pitt the Younger as a quid pro quo for the raising of fees on the certification of legal professionals such as barristers, solicitors, attorneys and notaries.[58]

In others, the use of a lawyer is optional and banks, title companies, or realtors may be used instead.[59] In some civil law jurisdictions, real estate transactions are handled by civil law notaries.[60] In England and Wales a special class of legal professional–the licensed conveyancer–is also allowed to carry out conveyancing services for reward.[61]
[edit] Carrying out the intent of the deceased

In many countries, only lawyers have the legal authority to draft wills, trusts, and any other documents that ensure the efficient disposition of a person's property after death. In some civil law countries this responsibility is handled by civil law notaries.[52]

In the United States, the estates of the deceased must generally be administered by a court through probate. American lawyers have a profitable monopoly on dispensing advice about probate law (which has been heavily criticized).[62]
[edit] Prosecution and defense of criminal suspects

In many civil law countries, prosecutors are trained and employed as part of the judiciary; they are law-trained jurists, but may not necessarily be lawyers in the sense that the word is used in the common law world.[63] In common law countries, prosecutors are usually lawyers holding regular licenses who simply happen to work for the government office that files criminal charges against suspects. Criminal defense lawyers specialize in the defense of those charged with any crimes.[64]
[edit] Education
Main article: Legal education

The educational prerequisites to becoming a lawyer vary greatly from country to country. In some countries, law is taught by a faculty of law, which is a department of a university's general undergraduate college.[65] Law students in those countries pursue a Master or Bachelor of Laws degree. In some countries it is common or even required for students to earn another bachelor's degree at the same time. Nor is the LL.B the sole obstacle; it is often followed by a series of advanced examinations, apprenticeships, and additional coursework at special government institutes.[66]

In other countries, particularly the United States, law is primarily taught at law schools. In the United States[67] and countries following the American model, (such as Canada[68] with the exception of the province of Quebec) law schools are graduate/professional schools where a bachelor's degree is a prerequisite for admission. Most law schools are part of universities but a few are independent institutions. Law schools in the United States (and many in Canada and elsewhere) award graduating students a J.D. (Juris Doctor/Doctor of Jurisprudence) (as opposed to the Bachelor of Laws) as the practitioner's law degree. Many schools also offer post-doctoral law degrees such as the LL.M (Legum Magister/Master of Laws), or the S.J.D. (Scientiae Juridicae Doctor/Doctor of Juridical Science) for students interested in advancing their research knowledge and credentials in a specific area of law.[69]

The methods and quality of legal education vary widely. Some countries require extensive clinical training in the form of apprenticeships or special clinical courses.[70] Others, like Venezuela, do not.[71] A few countries prefer to teach through assigned readings of judicial opinions (the casebook method) followed by intense in-class cross-examination by the professor (the Socratic method).[72][73] Many others have only lectures on highly abstract legal doctrines, which forces young lawyers to figure out how to actually think and write like a lawyer at their first apprenticeship (or job).[74][75][76] Depending upon the country, a typical class size could range from five students in a seminar to five hundred in a giant lecture room. In the United States, law schools maintain small class sizes, and as such, grant admissions on a more limited and competitive basis.[77]

Some countries, particularly industrialized ones, have a traditional preference for full-time law programs,[78] while in developing countries, students often work full- or part-time to pay the tuition and fees of their part-time law programs.[79][80]

Law schools in developing countries share several common problems, such as an overreliance on practicing judges and lawyers who treat teaching as a part-time hobby (and a concomitant scarcity of full-time law professors);[81][82] incompetent faculty with questionable credentials;[83] and textbooks that lag behind the current state of the law by two or three decades.[81][84]
[edit] Earning the right to practice law
Main article: Admission to practice law

Some jurisdictions grant a "diploma privilege" to certain institutions, so that merely earning a degree or credential from those institutions is the primary qualification for practicing law.[85] Mexico allows anyone with a law degree to practice law.[86] However, in a large number of countries, a law student must pass a bar examination (or a series of such examinations) before receiving a license to practice.[85][87][88] In a handful of U.S. states, one may become an attorney (a so-called country lawyer) by simply "reading law" and passing the bar examination, without having to attend law school first (although very few people actually become lawyers that way).[89]

Some countries require a formal apprenticeship with an experienced practitioner, while others do not.[90] For example, a few jurisdictions still allow an apprenticeship in place of any kind of formal legal education (though the number of persons who actually become lawyers that way is increasingly rare).[91]
[edit] Career structure
U.S. President Abraham Lincoln is a famous example of a lawyer-turned-politician.

The career structure of lawyers varies widely from one country to the next.
[edit] Common law/civil law

In most common law countries, especially those with fused professions, lawyers have many options over the course of their careers. Besides private practice, they can become a prosecutor, government counsel, corporate in-house counsel, administrative law judge, judge, arbitrator, law professor, or politician.[92] There are also many non-legal jobs which legal training is good preparation for, such as corporate executive, government administrator, investment banker, entrepreneur, or journalist.[93] In developing countries like India, a large majority of law students never actually practice, but simply use their law degree as a foundation for careers in other fields.[94]

In most civil law countries, lawyers generally structure their legal education around their chosen specialty; the boundaries between different types of lawyers are carefully defined and hard to cross. After one earns a law degree, career mobility may be severely constrained.[95] For example, unlike their American counterparts,[96] it is difficult for German judges to leave the bench and become advocates in private practice.[97] Another interesting example is France, where for much of the 20th century, all judiciary officials were graduates of an elite professional school for judges. Although the French judiciary has begun experimenting with the Anglo-American model of appointing judges from accomplished advocates, the few advocates who have actually joined the bench this way are looked down upon by their colleagues who have taken the traditional route to judicial office.[98]

In a few civil law countries, such as Sweden,[99] the legal profession is not rigorously bifurcated and everyone within it can easily change roles and arenas.
[edit] Specialization

In many countries, lawyers are general practitioners who will take almost any kind of case that walks in the door.[100] In others, there has been a tendency since the start of the 20th century for lawyers to specialize early in their careers.[101][102] In countries where specialization is prevalent, many lawyers specialize in representing one side in one particular area of the law; thus, it is common in the United States to hear of plaintiffs' personal injury attorneys.[103]
[edit] Organization
Main article: Law firm

Lawyers in private practice generally work in specialized businesses known as law firms,[104] with the exception of English barristers. The vast majority of law firms worldwide are small businesses that range in size from 1 to 10 lawyers.[105] The United States, with its large number of firms with more than 50 lawyers, is an exception.[106] The United Kingdom and Australia are also exceptions, as the UK, Australia and the U.S. are now home to several firms with more than 1,000 lawyers after a wave of mergers in the late 1990s.

Notably, barristers in England and Wales and some states in Australia do not work in "law firms". Those who offer their services to the general public—as opposed to those working "in house"—are required to be self-employed.[107] Most work in groupings known as "sets" or "chambers", where some administrative and marketing costs are shared. An important effect of this different organizational structure is that there is no conflict of interest where barristers in the same chambers work for opposing sides in a case, and in some specialised chambers this is commonplace.
[edit] Professional associations and regulation
[edit] Mandatory licensing and membership in professional organizations

In some jurisdictions, either the judiciary[108] or the Ministry of Justice[109] directly supervises the admission, licensing, and regulation of lawyers.

Other jurisdictions, by statute, tradition, or court order, have granted such powers to a professional association which all lawyers must belong to.[110] In the U.S., such associations are known as mandatory, integrated, or unified bar associations. In the Commonwealth of Nations, similar organizations are known as Inns of Court, bar councils or law societies.[111] In civil law countries, comparable organizations are known as Orders of Advocates,[112] Chambers of Advocates,[113] Colleges of Advocates,[114] Faculties of Advocates,[115] or similar names. Generally, a nonmember caught practicing law may be liable for the crime of unauthorized practice of law.[116]

In common law countries with divided legal professions, barristers traditionally belong to the bar council (or an Inn of Court) and solicitors belong to the law society. In the English-speaking world, the largest mandatory professional association of lawyers is the State Bar of California, with 200,000 members.

Some countries admit and regulate lawyers at the national level, so that a lawyer, once licensed, can argue cases in any court in the land. This is common in small countries like New Zealand, Japan, and Belgium.[117] Others, especially those with federal governments, tend to regulate lawyers at the state or provincial level; this is the case in the United States,[118] Canada,[119] Australia,[120] and Switzerland,[121] to name a few. Brazil is the most well-known federal government that regulates lawyers at the national level.[122]

Some countries, like Italy, regulate lawyers at the regional level,[123] and a few, like Belgium, even regulate them at the local level (that is, they are licensed and regulated by the local equivalent of bar associations but can advocate in courts nationwide).[124] In Germany, lawyers are admitted to regional bars and may appear for clients before all courts nationwide with the exception of the Federal Court of Justice of Germany (Bundesgerichtshof or BGH); oddly, securing admission to the BGH's bar limits a lawyer's practice solely to the supreme federal courts and the Federal Constitutional Court of Germany.[125]

Generally, geographic limitations can be troublesome for a lawyer who discovers that his client's cause requires him to litigate in a court beyond the normal geographic scope of his license. Although most courts have special pro hac vice rules for such occasions, the lawyer will still have to deal with a different set of professional responsibility rules, as well as the possibility of other differences in substantive and procedural law.

Some countries grant licenses to non-resident lawyers, who may then appear regularly on behalf of foreign clients. Others require all lawyers to live in the jurisdiction or to even hold national citizenship as a prerequisite for receiving a license to practice. But the trend in industrialized countries since the 1970s has been to abolish citizenship and residency restrictions. For example, the Supreme Court of Canada struck down a citizenship requirement on equality rights grounds in 1989,[126] and similarly, American citizenship and residency requirements were struck down as unconstitutional by the U.S. Supreme Court in 1973 and 1985, respectively.[127] The European Court of Justice made similar decisions in 1974 and 1977 striking down citizenship restrictions in Belgium and France.[128]
[edit] Who regulates lawyers

A key difference among countries is whether lawyers should be regulated solely by an independent judiciary and its subordinate institutions (a self-regulating legal profession),[129] or whether lawyers should be subject to supervision by the Ministry of Justice in the executive branch.

In most civil law countries, the government has traditionally exercised tight control over the legal profession in order to ensure a steady supply of loyal judges and bureaucrats. That is, lawyers were expected first and foremost to serve the state, and the availability of counsel for private litigants was an afterthought.[130] Even in civil law countries like Norway which have partially self-regulating professions, the Ministry of Justice is the sole issuer of licenses, and makes its own independent re-evaluation of a lawyer's fitness to practice after a lawyer has been expelled from the Advocates' Association.[109] Brazil is an unusual exception in that its national Order of Advocates has become a fully self-regulating institution (with direct control over licensing) and has successfully resisted government attempts to place it under the control of the Ministry of Labor.[131][132]

Of all the civil law countries, Communist countries historically went the farthest towards total state control, with all Communist lawyers forced to practice in collectives by the mid-1950s.[133][134] China is a prime example: technically, the People's Republic of China did not have lawyers, and instead had only poorly-trained, state-employed "legal workers," prior to the enactment of a comprehensive reform package in 1996 by the Standing Committee of the National People's Congress.[135]

In contrast, common law lawyers have traditionally regulated themselves through institutions where the influence of non-lawyers, if any, was weak and indirect (despite nominal state control).[136] Such institutions have been traditionally dominated by private practitioners who opposed strong state control of the profession on the grounds that it would endanger the ability of lawyers to zealously and competently advocate their clients' causes in the adversarial system of justice.[137]

However, the concept of the self-regulating profession has been criticized as a sham which serves to legitimize the professional monopoly while protecting the profession from public scrutiny.[138] Disciplinary mechanisms have been astonishingly ineffective, and penalties have been light or nonexistent.[139][140][141]
[edit] Voluntary associations of lawyers

Lawyers are always free to form voluntary associations of their own, apart from any licensing or mandatory membership that may be required by the laws of their jurisdiction. Like their mandatory counterparts, such organizations may exist at all geographic levels.[86][142] In American English, such associations are known as voluntary bar associations.[143] The largest voluntary professional association of lawyers in the English-speaking world is the American Bar Association.

In some countries, like France and Italy, lawyers have also formed trade unions.[144]
[edit] Cultural perception of lawyers

Hostility towards the legal profession is a widespread phenomenon. The legal profession was abolished in Prussia in 1780 and in France in 1789, though both countries eventually realized that their judicial systems could not function efficiently without lawyers.[145] Complaints about too many lawyers were common in both England and the United States in the 1840s[146][147] Germany in the 1910s,[148] and in Australia,[149] Canada,[150] the United States,[151][152][153] and Scotland[154] in the 1980s.

Public distrust of lawyers reached record heights in the United States after the Watergate scandal.[153][155] In the aftermath of Watergate, legal self-help books became popular among those who wished to solve their legal problems without having to deal with lawyers.[156] Lawyer jokes (already a perennial favorite) also soared in popularity in English-speaking North America as a result of Watergate.[157] In 1989, American legal self-help publisher Nolo Press published a 171-page compilation of negative anecdotes about lawyers from throughout human history.[158]

In Adventures in Law and Justice (2003), legal researcher Bryan Horrigan dedicated a chapter to "Myths, Fictions, and Realities" about law and illustrated the perennial criticism of lawyers as "amoral [...] guns for hire"[159] with a quote from Ambrose Bierce's satirical The Devil's Dictionary (1911) that summarized the noun as: "LAWYER, n. One skilled in circumvention of the law."[160]

More generally, in Legal Ethics: A Comparative Study (2004), law professor Geoffrey C. Hazard, Jr. with Angelo Dondi briefly examined the "regulations attempting to suppress lawyer misconduct" and noted that their similarity around the world was paralleled by a "remarkable consistency" in certain "persistant grievances" about lawyers that transcends both time and locale, from the Bible to medieval England to dynastic China.[161] The authors then generalized these common complaints about lawyers as being classified into five "general categories" as follows:
“

* abuse of litigation in various ways, including using dilatory tactics and false evidence and making frivolous arguments to the courts;
* preparation of false documentation, such as false deeds, contracts, or wills;
* deceiving clients and other persons and misappropriating property;
* procrastination in dealings with clients; and
* charging excessive fees.[161]

”
[edit] Compensation
Main article: Attorney's fee

Lawyers are paid for their work in a variety of ways. In private practice, they may work for an hourly fee according to a billable hour structure,[162] a contingency fee[163] (usually in cases involving personal injury), or a lump sum payment if the matter is straightforward. Normally, most lawyers negotiate a written fee agreement up front and may require a non-refundable retainer in advance. In many countries there are fee-shifting arrangements by which the loser must pay the winner's fees and costs; the United States is the major exception,[164] although in turn, its legislators have carved out many exceptions to the so-called "American Rule" of no fee shifting.

Lawyers working directly on the payroll of governments, nonprofits, and corporations usually earn a regular annual salary.[165] In many countries, with the notable exception of Germany,[166] lawyers can also volunteer their labor in the service of worthy causes through an arrangement called pro bono (short for pro bono publico, "for the common good").[167] Traditionally such work was performed on behalf of the poor, but in some countries it has now expanded to many other causes such as the environment.

In some countries, there are legal aid lawyers who specialize in providing legal services to the indigent.[168][169] France and Spain even have formal fee structures by which lawyers are compensated by the government for legal aid cases on a per-case basis.[170] A similar system, though not as extensive or generous, operates in Australia, Canada, as well as South Africa.[citation needed]

In other countries, legal aid specialists are practically nonexistent. This may be because non-lawyers are allowed to provide such services; in both Italy and Belgium, trade unions and political parties provide what can be characterized as legal aid services.[171] Some legal aid in Belgium is also provided by young lawyer apprentices subsidized by local bar associations (known as the pro deo system), as well as consumer protection nonprofit organizations and Public Assistance Agencies subsidized by local governments.[172] In Germany, mandatory fee structures have enabled widespread implementation of affordable legal expense insurance.[173]
[edit] History
Main article: History of the legal profession
16th century painting of a civil law notary, by Flemish painter Quentin Massys. A civil law notary is roughly analogous to a common law solicitor, except that, unlike solicitors, civil law notaries do not practice litigation to any degree.
[edit] Ancient Greece

The earliest people who could be described as "lawyers" were probably the orators of ancient Athens (see History of Athens). However, Athenian orators faced serious structural obstacles. First, there was a rule that individuals were supposed to plead their own cases, which was soon bypassed by the increasing tendency of individuals to ask a "friend" for assistance.[174] However, around the middle of the fourth century, the Athenians disposed of the perfunctory request for a friend.[175] Second, a more serious obstacle, which the Athenian orators never completely overcame, was the rule that no one could take a fee to plead the cause of another. This law was widely disregarded in practice, but was never abolished, which meant that orators could never present themselves as legal professionals or experts.[176] They had to uphold the legal fiction that they were merely an ordinary citizen generously helping out a friend for free, and thus they could never organize into a real profession—with professional associations and titles and all the other pomp and circumstance—like their modern counterparts.[177] Therefore, if one narrows the definition to those men who could practice the legal profession openly and legally, then the first lawyers would have to be the orators of ancient Rome.[178]
[edit] Early Ancient Rome

A law enacted in 204 BC barred Roman advocates from taking fees, but the law was widely ignored.[179] The ban on fees was abolished by Emperor Claudius, who legalized advocacy as a profession and allowed the Roman advocates to become the first lawyers who could practice openly—but he also imposed a fee ceiling of 10,000 sesterces.[180] This was apparently not much money; the Satires of Juvenal complain that there was no money in working as an advocate.[181]

Like their Greek contemporaries, early Roman advocates were trained in rhetoric, not law, and the judges before whom they argued were also not law-trained.[182] But very early on, unlike Athens, Rome developed a class of specialists who were learned in the law, known as jurisconsults (iuris consulti).[183] Jurisconsults were wealthy amateurs who dabbled in law as an intellectual hobby; they did not make their primary living from it.[183] They gave legal opinions (responsa) on legal issues to all comers (a practice known as publice respondere).[184] Roman judges and governors would routinely consult with an advisory panel of jurisconsults before rendering a decision, and advocates and ordinary people also went to jurisconsults for legal opinions.[183] Thus, the Romans were the first to have a class of people who spent their days thinking about legal problems, and this is why their law became so "precise, detailed, and technical."[183]
[edit] Late Ancient Rome

During the Roman Republic and the early Roman Empire, jurisconsults and advocates were unregulated, since the former were amateurs and the latter were technically illegal.[185] Any citizen could call himself an advocate or a legal expert, though whether people believed him would depend upon his personal reputation. This changed once Claudius legalized the legal profession. By the start of the Byzantine Empire, the legal profession had become well-established, heavily regulated, and highly stratified.[186] The centralization and bureaucratization of the profession was apparently gradual at first, but accelerated during the reign of Emperor Hadrian.[187] At the same time, the jurisconsults went into decline during the imperial period.[188]

In the words of Fritz Schulz, "by the fourth century things had changed in the eastern Empire: advocates now were really lawyers."[189] For example, by the fourth century, advocates had to be enrolled on the bar of a court to argue before it, they could only be attached to one court at a time, and there were restrictions (which came and went depending upon who was emperor) on how many advocates could be enrolled at a particular court.[190] By the 380s, advocates were studying law in addition to rhetoric (thus reducing the need for a separate class of jurisconsults); in 460, Emperor Leo imposed a requirement that new advocates seeking admission had to produce testimonials from their teachers; and by the sixth century, a regular course of legal study lasting about four years was required for admission.[191] Claudius's fee ceiling lasted all the way into the Byzantine period, though by then it was measured at 100 solidi.[192] Of course, it was widely evaded, either through demands for maintenance and expenses or a sub rosa barter transaction.[192] The latter was cause for disbarment.[192]

The notaries (tabelliones) appeared in the late Roman Empire. Like their modern-day descendants, the civil law notaries, they were responsible for drafting wills, conveyances, and contracts.[193] They were ubiquitous and most villages had one.[193] In Roman times, notaries were widely considered to be inferior to advocates and jurisconsults.[193] Roman notaries were not law-trained; they were barely literate hacks who wrapped the simplest transactions in mountains of legal jargon, since they were paid by the line.[194]
[edit] Middle Ages

After the fall of the western Empire and the onset of the Dark Ages, the legal profession of Western Europe collapsed. As James Brundage has explained: "[by 1140], no one in Western Europe could properly be described as a professional lawyer or a professional canonist in anything like the modern sense of the term 'professional.' "[195] However, from 1150 onward, a small but increasing number of men became experts in canon law but only in furtherance of other occupational goals, such as serving the Roman Catholic Church as priests.[196] From 1190 to 1230, however, there was a crucial shift in which some men began to practice canon law as a lifelong profession in itself.[197]

The legal profession's return was marked by the renewed efforts of church and state to regulate it. In 1231 two French councils mandated that lawyers had to swear an oath of admission before practicing before the bishop's courts in their regions, and a similar oath was promulgated by the papal legate in London in 1237.[198] During the same decade, Frederick II, the emperor of the Kingdom of Sicily, imposed a similar oath in his civil courts.[199] By 1250 the nucleus of a new legal profession had clearly formed.[200] The new trend towards professionalization culminated in a controversial proposal at the Second Council of Lyon in 1275 that all ecclesiastical courts should require an oath of admission.[201] Although not adopted by the council, it was highly influential in many such courts throughout Europe.[201] The civil courts in England also joined the trend towards professionalization; in 1275 a statute was enacted that prescribed punishment for professional lawyers guilty of deceit, and in 1280 the mayor's court of the city of London promulgated regulations concerning admission procedures, including the administering of an oath.[202]
[edit] Titles

Generally speaking, the modern practice is for lawyers to avoid use of any title, although formal practice varies across the world.

Historically lawyers in most European countries were addressed with the title of doctor, and countries outside of Europe have generally followed the practice of the European country which had policy influence through "modernization" or "colonialization." The first university degrees, starting with the law school of the University of Bologna (or glossators) in the 11th century, were all law degrees and doctorates.[203] Degrees in other fields did not start until the 13th century, but the doctor continued to be the only degree offered at many of the old universities until the 20th century. Therefore, in many of the southern European countries, including Portugal, Spain and Italy,,[204] lawyers have traditionally been addressed as “doctor,” a practice which was transferred to many countries in South America[205] (including Macau in China).[206] Because the law degrees are no longer doctorate level degrees, the formal “doctor” title for lawyers is either seen as archaic or incorrect, although it is still a legal title in Italy and in use in many countries outside of Europe.[207]

The title of doctor has never been used to address lawyers in England or other common law countries (with the exception of the United States). This is because until 1846 lawyers in England were not required to have a university degree and were trained by other attorneys by apprenticeship or in the Inns of Court.[208] Since law degrees started to become a requirement for lawyers in England, the degree awarded has been the undergraduate LL.B.
http://www.blogger.com/post-create.g?blogID=2930986793758569263
Even though most lawyers in the United States do not use any titles, the law degree in that country is the Juris Doctor, a professional doctorate degree,[209] and some J.D. holders in the United States use the title of "Doctor" in professional[210] and academic situations.[211] In countries where holders of the first law degree traditionally use the title of doctor (e.g. Peru, Brazil, Macau, Portugal, Argentina, and Italy),[212] J.D. holders who are attorneys will often use the title of doctor as well.[213] It is not uncommon for English-language lawyers, especially in the United States, to use the honorific suffix "Esq." (for "Esquire"), irrespective of whether the lawyer is male or female.[214]

In many Asian countries, the proper title for a lawyer is simply, "lawyer", but holders of the Juris Doctor degree are also called "博士" (doctor).

When do you need a tax attorney?

2009-11-20T16:37:00.000-08:00

When Do You Need a Tax Attorney? Tax attorneys are lawyers who specialize in the complex and technical field of tax law. Tax attorneys are best for handling complex, technical, and legal issues.

You definitely need a tax attorney if:

* You have a taxable estate, need to make complex estate planning strategies, or need to file an estate tax return.
* You are starting a business and need legal counsel about the structure and tax treatment of your company.
* You are engaging in international business and need help with contracts, tax treatment, and other legal matters.
* You plan to bring a suit against the IRS.
* You plan to seek independent review of your case before the US Tax Court.
* You are under criminal investigation by the IRS.
* You have committed tax fraud (such as claiming false deductions and credits) and need the protection of privilege.

What you should look for
Tax attorneys must have a Juris Doctor (J.D.) degree and must be admitted to the state bar. Those are the minimum requirements for practicing law. Additionally, tax attorneys should have advanced training in tax law. Most will have a master of laws (LL.M.) degree in taxation.

Some tax attorneys also have a background in accounting. If you are facing a complex accounting as well as legal matter, you might want to looking for an attorney who is also a Certified Public Accountant.

Questions to ask

* Is the attorney admitted to the state bar?
* What does the tax attorney specialize in?
* How much does the attorney charge?
* Can the attorney help you with your tax case?
* If not, can the attorney refer you to another tax attorney who can help you?

Free and Low Cost Legal Assistance
Tax clinics throughout the United States provide free or low-cost legal assistance to qualifying taxpayers. Tax clinics are funded by the National Taxpayer Advocate. You can find a complete list of tax clinics in IRS Publication 4134 (PDF file, 4 pages).
More Tax Planning: U.S. Quick Tips
How to Find a Tax Professional

Questions to ask a Tax AccountantCertified Public AccountantsEnrolled Agents
Finding a Tax Attorney

American Bar AssociationAssociation of Attorney/CPAsFree or Low Cost Help at Tax Clinics (PDF)
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How to purchase (buy) structured settlements

2009-11-20T16:35:00.000-08:00

#
Introduction

* There are many legal requirements and restrictions that affect who can buy structured settlements, so if you are interested in purchasing a structured settlement, you will want to work with a company who matches structured settlements with investors.

#
What are Structured Settlements?

* When law suits are settled, damages may be awarded in a lump sum, or a series of payments. A settlement which is awarded in a series of payments over time is called a structured settlement. Structured settlements are generally created by using a third party intermediary to provide the financing.

* State and federal law may restrict the sale of structured settlements, and there are many legal complications that can arise. Since you'll be exchanging cash for the right to receive future payments, you'll want to make sure that you are protected.

1. Work with an established broker.
2. Look for a structured settlement financing company who is a member of the National Structured Settlements Trade Association who also places settlements with private investors.
3. Get multiple quotes to ensure you get the best deal.
4. Retain an attorney to review the agreement to ensure your interests are protected.

Structured Settlements

2009-11-20T16:30:00.000-08:00

A structured settlement is a financial or insurance arrangement, including periodic payments, that a claimant accepts to resolve a personal injury tort claim or to compromise a statutory periodic payment obligation. Structured settlements were first utilized in Canada and the United States during the 1970s as an alternative to lump sum settlements. Structured settlements are now part of the statutory tort law of several common law countries including Australia, Canada, England and the United States. Although some uniformity exists, each of these countries has its own definitions, rules and standards for structured settlements. Structured settlements may include income tax and spendthrift requirements as well as benefits. Structured settlement payments are sometimes called “periodic payments.” A structured settlement incorporated into a trial judgment is called a “periodic payment judgment."
Contents

Structured Settlements in the United States

The United States has enacted structured settlement laws and regulations at both the federal and state levels. Federal structured settlement laws include sections of the (federal) Internal Revenue Code[1]. State structured settlement laws include structured settlement protection statutes and periodic payment of judgment statutes. Medicaid and Medicare laws and regulations affect structured settlements. To preserve a claimant’s Medicare and Medicaid benefits, structured settlement payments may be incorporated into “Medicare Set Aside Arrangements” “Special Needs Trusts."

Structured settlements have been endorsed by many of the nation's largest disability rights organizations, including the American Association of People with Disabilities [2] and the National Organization on Disability [3].

In April 2009, financial writer Suze Orman wrote in a column [1] that structured settlements "provide ongoing income and reduce the risk of blowing a lump sum through poor financial choices." In response to a reader's question, she added that financial security can be improved "if you use the structured payouts wisely."
[edit] Definitions

A definition of “structured settlement” can be found in Internal Revenue Code Section 5891(c)(1) (26 U.S.C. § 5891(c)(1)), which states that a structured settlement is an "arrangement" that meets the following requirements:

* A structured settlement must be established by:
o A suit or agreement for periodic payment of damages excludable from gross income under Internal Revenue Code Section 104(a)(2) (26 U.S.C. § 104(a)(2)); or
o An agreement for the periodic payment of compensation under any workers’ compensation law excludable under Internal Revenue Code Section 104(a)(1) (26 U.S.C. § 104(a)(1)); and
* The periodic payments must be of the character described in subparagraphs (A) and (B) of Internal Revenue Code Section 130(c)(2) (26 U.S.C. § 130(c)(2))) and must be payable by a person who:
o Is a party to the suit or agreement or to a workers' compensation claim; or
o By a person who has assumed the liability for such periodic payments under a qualified assignment in accordance with Internal Revenue Code Section 130 (26 U.S.C. § 130).

It is important to note that the language immediately prior to Internal Revenue Code Section 5891(c)(1) states that the definition that appears there is "for the purposes of this section". Internal Revenue Code Section 5891 entitled "Structured Settlement Factoring Transactions" deals with the excise tax imposed on the "factoring discount" (see IRC 5891(c)(4)), when there is a purchase of structured settlement payment rights and the exceptions to the excise tax. A number of structured settlement industry commentators have been observed attempting to broaden the express language that appears in the Internal Revenue Code.
[edit] Legal Structure

The typical structured settlement arises and is structured as follows: An injured party (the claimant) settles a tort suit with the defendant (or its insurance carrier) pursuant to a settlement agreement that provides that, in exchange for the claimant's securing the dismissal of the lawsuit, the defendant (or, more commonly, its insurer) agrees to make a series of periodic payments over time. The defendant, or the property/casualty insurance company, thus finds itself with a long-term payment obligation to the claimant. To fund this obligation, the property/casualty insurer generally takes one of two typical approaches: It either purchases an annuity from a life insurance company (an arrangement called a "buy and hold" case) or it assigns (or, more properly, delegates) its periodic payment obligation to a third party ("assigned case") which in turn purchases a "qualified funding asset" to finance the assigned periodic payment obligation. Pursuant to IRC 130(d) a "qualified funding asset" may be an annuity or an obligation of the United States government.

In an unassigned case, the defendant or property/casualty insurer retains the periodic payment obligation and funds it by purchasing an annuity from a life insurance company, thereby offsetting its obligation with a matching asset. The payment stream purchased under the annuity matches exactly, in timing and amounts, the periodic payments agreed to in the settlement agreement. The defendant or property/casualty company owns the annuity and names the claimant as the payee under the annuity, thereby directing the annuity issuer to send payments directly to the claimant. If any of the periodic payments are life-contingent (i.e., the obligation to make a payment is contingent on someone continuing to be alive), then the claimant (or whoever is determined to be the measuring life) is named as the annuitant or measuring life under the annuity.

In an assigned case, the defendant or property/casualty company does not wish to retain the long-term periodic payment obligation on its books. Accordingly, the defendant or property/casualty insurer transfers the obligation, through a legal device called a qualified assignment, to a third party. The third party, called an assignment company, will require the defendant or property/casualty company to pay it an amount sufficient to enable it to buy an annuity that will fund its newly accepted periodic payment obligation. If the claimant consents to the transfer of the periodic payment obligation (either in the settlement agreement or, failing that, in a special form of qualified assignment known as a qualified assignment and release), the defendant and/or its property/casualty company has no further liability to make the periodic payments. This method of substituting the obligor is desirable for defendants or property/casualty companies that do not want to retain the periodic payment obligation on their books. A qualified assignment is also advantageous for the claimant as it will not have to rely on the continued credit of the defendant or property/casualty company as a general creditor. Typically, an assignment company is an affiliate of the life insurance company from which the annuity is purchased.

An assignment is said to be "qualified" if it satisfies the criteria set forth in Internal Revenue Code Section 130 [2]. Qualification of the assignment is important to assignment companies because without it the amount they receive to induce them to accept periodic payment obligations would be considered income for federal income tax purposes. If an assignment qualifies under Section 130, however, the amount received is excluded from the income of the assignment company. This provision of the tax code was enacted to encourage assigned cases; without it, assignment companies would owe federal income taxes but would typically have no source from which to make the payments.

To comply with the provisions of IRC 130, periodic payments generally cannot be accelerated, increased, decreased, etc. The rights to receive structured settlement payment rights may be transferred (see structured settlement factoring transaction

Remortgage

2009-11-20T16:28:00.000-08:00

A remortgage (also known as refinancing) is the process of paying off one mortgage with the proceeds from a new mortgage using the same property as security. The term is mainly used commercially in the United Kingdom, though what it describes is not uniquely British. Often the purpose of switching is to secure a more favorable interest rate from a different lender.

The process of remortgaging does not usually involve moving home or taking out a second mortgage on the property; it is in effect the transfer of a mortgage from one lender to another. Homeowners may choose to remortgage for various reasons, including to reduce the size of repayments, to pay off a mortgage earlier, to raise capital, or to consolidate other debts.

Homeowners often mis-use the expression remortgage when they are simply switching from one product to another with the same lender; this is not a remortgage which involves the removal of one legal charge over a property and its substitution with another in favour of a new lender.

Bad credit loans

2009-11-20T16:24:00.000-08:00

Homeowners can get easier access to a Bad credit loan
Many people in the UK are in a situation where their credit rating has taken a real knock, and the prospect of being able to take out affordable, low rate finance for bad credit consumers can be pretty slim depending on the extent of the damage to the credit rating. In fact, those with a very bad credit rating will often find it impossible to get finance on an unsecured basis, or at best may be able to get an unsecured loan with a lender that charges extortionate interest rates, which means hefty interest repayments and sky high monthly repayments, and not even the full loan amount that they wish to borrow.

However, the situation is often better for those that own their own homes, even with bad credit, as there are some very competitive bad credit loan options available these days that are specifically designed for those with poor credit. A bad credit loan is ideal for homeowners that have a poor credit history or low credit rating, and can even be considered for those with county court judgements and defaults. Getting bad credit loans can prove difficult if you have no assets, but because homeowner loans are secured against the borrower’s property lenders are far more likely to consider offering competitive rates on a bad credit loan.

It is important to remember that if you have bad credit and a low credit rating you are an increased risk to the lender because of your financial history, and this means that the lender has to take extra precautions. This is why many lenders will only offer a bad credit loan on a secured basis, so that they have some form of security in the event that you default on the loan payments. You will also find that the interest rates on a bad credit loan are higher than that offered on loans for people with good credit. However, you can still get some very competitive rates on a bad credit loan, and the choice of bad credit loans is better than ever, with more and more reputable lenders offering this facility.

Homeowners Application Form

You can use a bad credit loans for a range of purposes, and providing you make your repayments on time taking out this type of finance could help to improve your credit rating, which means that you may be eligible for more competitive loans in the future. Many people use a bad credit loan to pay off some smaller loans and debts such as credit cards. This can reduce the chances of damaging your credit further by reducing the number of repayments that you have to make each month, thus reducing the risk of missed repayments. It can also reduce the amount that you have to pay out each month, easing your financial situation somewhat.

Of course, you do need to remember that there are now many lenders that offer bad credit loans for homeowners, and you therefore have to determine which of these is the best value and offers the most competitive rates of interest, which can be time consuming and frustrating. This is where Loans4 could really help, as our expert team has access to some excellent rates on bad credit loans. We can search our panel of reputable lenders and find bad credit loans that suit your needs and your pocket. At Loans4 we will strive to get the best rate of interest on a loan based on your circumstances and the extent of damage to your credit.

All you need to do is complete our simple online form to provide us with a few basic details, and we can then start searching for the most competitive bad credit loan on your behalf. At Loans4 we will take the time, stress, and worry out of finding the best loan to suit your needs.

About loans

2009-11-20T16:18:00.000-08:00

What is a secured homeowner loan?

A Secured Homeowner Loan is a medium to long term financial solution for people looking to borrow between £1500 and £5000 for any personal purpose (Home Improvements, Car Purchase, Consolidation, Holiday, Large Purchase etc).

Dependant on the amount borrowed, loans can be repayed between 12 and 36 months.

Top Up Loan Scheme

Should you need to borrow more in future, we can top up your loan and make your funds available to you in one of our 1st Stop Pre-paid Cards. Our service is designed to put you in control of your cashflow, for those times when an unexpected expense catches you by surprise.

What is an unsecured personal loan?

An Unsecured Personal Loan is a medium term financial solution for people looking to borrow between £300 and £1,250 for any personal purpose (Home Improvements, Car Purchase, Consolidation, Holiday, Large Purchase etc).

Dependant on the amount borrowed, loans can be repaid between 3 and 15 months.

Top Up Loan Scheme

Should you need to borrow more in future, we can top up your loan and make your funds available to you in one of our 1st Stop Pre-paid Cards. Our service is designed to put you in control of your cashflow, for those times when an unexpected expense catches you by surprise.

Students loans

2009-11-20T16:16:00.000-08:00

Products & Services
you are here... Home > About Student Finance > products & services

Government policy on student finance is set by the Department for Innovation Universities and Skills (for England) and the Education Departments of Scotland, Wales and Northern Ireland. It is the Student Loans Company's role to undertake the administration and processing involved in the payment of loans and grants to students, and the payment of tuition fees to higher and further education institutions. In doing so, the Student Loans Company provides a broad range of products and services to education funding in the UK.

* Tuition Fee Support
* Maintenance Support
* Targeted Support

The Student Loans Company distributes the tuition fee payments to universities and colleges for all eligible students from England, Wales, Northern Ireland and the EU.

Repayment of student loans is a shared responsibility between SLC and Her Majesty's Revenue & Customs (HMRC). We undertake account maintenance and communication with borrowers in repayment, and collection is undertaken by HMRC through the PAYE process. The system of collection is known as Income Contingent Repayment (ICR).

Repayments on loans issued before 1998 are not collected by HMRC; instead they are collected directly by SLC by direct debit and are known as fixed-term repayments.

Find out more on how student loans are repaid, write-off terms, loan cancellation and how the interest rate is applied to a loan.

The Student Loans Company administers a range of products encompassing the areas of tuition fee support, maintenance support, and targeted support, on behalf of the English, Northern Irish, Scottish and Welsh Parliaments and Devolved Administrations.

Bursaries and Scholarships (HEBBS)

All eligible current system students attending a Higher Education Institution (HEI) in England and Northern Ireland that is charging variable tuition fees can apply for support from that institution under the Higher Education Bursaries and Scholarships Scheme (HEBSS)

There are three types of award: mandatory bursaries, discretionary bursaries and scholarships. HEIs can opt for one of two administration service levels from SLC. Bursaries for students from Wales are also available under the Welsh Bursary Scheme (WBS).

Bursaries and scholarships are extra sources of financial help available from colleges and universities and don't have to be repaid. They're paid in addition to any Student Loans or grants awarded.

2010/11 Policy Announcement

On 1 July 2009 the Department for Business Innovation and Skills confirmed the arrangements for the higher education support regulations for English students for 2010/11. The full Ministerial statement can be found here.

The main changes to the 2010/11 support package for English students are as follows:

* Support to cover the cost of full-time tuition fees and for those on part-time courses will increase by 2.04%.
* The full-time student support rates for living costs and for targeted support have been maintained at 2009/10 levels.
* Student support for new students on full-time and part-time post graduate and equivalent initial teacher training courses will be brought in line with that available for full-time and part-time undergraduate courses.
* Students in receipt of EMA and who wish to go onto higher education will be given a quote of the support they could receive if they choose to do so, instead of a guarantee of future support.

10/11 Application Cycle
The application cycle for Student Finance England will open around November 2009.

slc.co.uk

International Student Loan Center

2009-11-20T16:09:00.000-08:00

Each year over 200,000 Americans study abroad and nearly 600,000 international students come to the USA to study. However, studying abroad often requires financial assistance for extra expenses such as travel, accommodations and materials, which can make it a greater financial commitment. InternationalStudentLoan.com is here to help, by offering access to a range of international student loans and study abroad loans to international students and Canadian students in the USA and for US Students studying around the world.

International Student Loans are available for:

International Students US Students

More information about private loans for international students studying in the United States, or planning to study in the United States.

More Information | Apply Online

Federal and private loan programs are available for US Students who are studying abroad or fully enrolled in a non-US School.

More Information | Apply Online

Why get an International Student Loan?

For the most part, students struggle to fund their international education. Scholarships and grants are always available, but if you are one of the lucky ones to receive one it will still not cover all your expenses. That is where an International Student Loan can help. Through our lender partners, students with creditworthy cosigners at eligible schools can apply for up to the cost of attendance as certified by your school and confirmed by your lender, less other financial aid received.

Borrow Responsibly.

US students should maximize their borrowing under Stafford and other federally subsidized loans before resorting to private loans. Both US and international students should use scholarships, personal and family funds, and any other money you can first.

Please take the time to visit and learn more about our international student loans, canadian student loans and us student loans. We also have a dedicated customer support center to help students with your loan application and research - please contact us with any questions.

internationalstudentloan.com

Home insurance

2009-11-20T16:08:00.000-08:00

Get instant home insurance quotes with Insure4USA

Welcome to Insure4USA - Compare home insurance quotes and rates online. Insurance companies include GMAC, MetLife, Farmers, State Farm, Mercury, Nationwide, The Hartford, Allstate and many more. Whether you're looking for homeowners insurance, condo insurance, or renters insurance - in just few minutes, you'll get multiple insurance quotes and big opportunities to save.
Benefits

* Compare and save on your home insurance
* Search over US top home insurance providers in seconds
* Quick and easy to use website - just one easy online form
* No hidden extras
* 24 hour claims line, 7 days a week

Whether you have just purchased your first home or are looking to save on an existing homeowners insurance policy, it takes just a few minutes to learn what you need and get quotes.

House and contents insurance policies to suit the needs of all types of homeowners. Whether you own or rent your property, Insure4USA will provide the best home insurance quote for buildings insurance, contents insurance or both from a panel of leading USA providers.

Discounts are available for any modifications done to your home - like a new roof, plumbing, electrical, or heating system.

This site allows you to choose from the USA leading suppliers. We are independent so you can get a quote from a all providers and specialist insurers to allow you to find the cheapest homeowners insurance.
What is Homeowners Insurance?

Homeowners insurance provides financial protection against disasters is the type of property insurance that covers private homes. It is an insurance policy that combines various personal insurance protections, which can include losses occurring to one's home, its contents, loss of its use (additional living expenses), or loss of other personal possessions of the homeowner, as well as liability insurance for accidents that may happen at the home.

Health insurance

2009-11-20T16:06:00.000-08:00

Get instant health insurance quotes with Insure4USA

Health insurance is a form of group insurance, where individuals pay premiums or taxes in order to help protect themselves from high or unexpected healthcare expenses. Health insurance works by estimating the overall "risk" of healthcare expenses and developing a routine finance structure (such as a monthly premium, or annual tax) that will ensure that money is available to pay for the healthcare benefits specified in the insurance agreement. The healthcare benefit is administered by a central organization, which is most often either a government agency, or a private or not-for-profit entity operating a health plan.

Health insurance helps protect you from high medical care costs. Many people in the United States get a health insurance policy through their employers. In most cases, the employer helps pay for that insurance. Insurance through employers is often with a managed care plan. These plans contract with health care providers and medical facilities to provide care for members at reduced costs. You can also purchase health insurance on your own. It usually costs you more than employer-based insurance. People who meet certain requirements can qualify for government health insurance, such as Medicare and Medicaid. If you do not have health insurance, you must pay your medical bills directly or rely on health care providers or organizations that donate care.

Our insurance service makes buying health insurance fast, easy and secure. You can learn all about health insurance, get free online health insurance quotes, and compare health plan prices, and choose from affordable health insurance plans and apply for health insurance online.

Insure4USA.com service offers free quotes for short-term health insurance, dental health insurance, group health insurance, family health insurance, student health insurance and individual health insurance.

Insure4USA.com understands that our customers are looking for affordable health insurance, and every time you or your family need, we help you choose best plan from hundreds of health plans at the best available rates. Get low cost health insurance coverage or browse through our extensive information resources on all health insurance plans. We think of you and your future!

Life insurance (Get life insurance)

2009-11-20T16:01:00.000-08:00

Get instant life insurance quotes with Insure4USA

Life Insurance or owner and the insurer, where the insurer agrees to pay a sum of money upon the occurrence of the policy owner's death. In return, the policy owner (or policy payer) agrees to pay a stipulated amount called a premium at regular intervals. As with most insurance polices, life insurance is a contract between the insurer and the policy owner (policyholder) whereby a benefit is paid to the designated Beneficiary (or Beneficiaries) if an insured event occurs which is covered by the policy. To be a life policy the insured event must be based upon life (or lives) of the people named in the policy.

Life insurance is unique among financial instruments. It is one of, if not the only financial instrument that is based on caring and love.

We can offer advice on joint life insurance quotes to cover more than one policyholder. Whatever life insurance advice or products, you are seeking, complete our online quote form and we will take the hassle out of the search for you.
Why do I need Life Insurance?

We buy life insurance because we want to make sure that our loved ones, especially our dependents, can remain financially secure after we die. The money your beneficiaries receive - the death benefit - is income tax free and can help pay for your funeral costs, final estate settlement costs or medical bills.

The reasons on which it is necessary to issue life insurance:

Mortgage repayments – do you wish to arrange for your mortgage to be paid off?

Replacing the primary earner’s salary – ensuring the family does not fall on hard times after your death.

Replacing childcare – the death of the primary childcare provider could lead to the need for childcare expenses.

Education expenses – cover for school/university fees after the death of the primary earner.

Life insurance is also used to achieve specific business or estate planning goals.
How do I know how much Life Insurance I need?

ICI recommends that each family income provider carry no less than ten times their annual income in life insurance. The amount of your outstanding mortgage should also be a consideration. Any coverage for your mortgage should be in addition to the amount of insurance you calculate for your income coverage.
How do I choose the right company?

Buying life insurance is a little more complex than purchasing so, when you purchase a policy you are buying a promise, a contract to pay something in the future vs. buying a commodity or something tangible. It's very important for you to examine the company that's backing your policy as well as considering the cost of the policy. You should pay particular attention, at time of purchase and throughout the life of the policy, to the financial stability ratings of your life insurance company.
How much coverage should I have?

You should have enough coverage to replace the income that you would have earned had you been alive to earn it.

The longer your policy remains in force, the more likely it is that the company will pay a claim, therefore the more expensive it is. That is why whole life insurance policies have the highest premium - it's insurance for your whole life, no matter when you pass on. When you have a whole life policy you have assurance that you will have coverage as long as you live. As long as you pay your premium, the company will guarantee that benefits will be paid to your heirs. That is why a 5 or 10-year term life insurance policy is the least expensive. The company is less likely to pay a claim on that term life policy.

There are ways to save money when buying life insurance, but they don’t always entail paying a lower premium immediately. As your top priority, look for a policy that meets your needs. Buying the wrong benefits for a low premium is a waste, not a saving. Beyond that, here are some ways to maximize your life insurance dollars.

* Focus on financially sound companies.
* Shop around to get a sense of the premium you’re likely to pay.
* Look into group insurance.
* Take care of yourself.
* Shop around to get a good rate.
* Consider the net cost index.
* Be aware of premium discounts for particular amounts of insurance.
* Beware of “fractional premiums”.
* If you’re buying a term policy, look for renewal guarantees.

Free Auto Insurance Quotes (Auto insurance online)

2009-11-20T15:55:00.000-08:00

Compare Free Auto Insurance Quotes and Save

These days, auto insurance is a must for all those people who own a vehicle. The number of road accidents and mishaps are increasing every day. For getting coverage against so many detrimental things which can happen to almost anyone without even a prior notice, auto insurance is an investment worth considering. In some countries, it is even mandatory by law and so people have no other option left. In layman terms, auto insurance is a small amount of investment made by you, which provides coverage to your vehicle in case it faces any kind of damage.
Types of Auto Insurance

It mainly comes in the following two types. Depending upon the budget, one can go for the policy which best suits their pocket.

Full coverage policy – In this type of insurance policy, the vehicle gets the coverage without considering the person who is driving it. Even if you were not driving the vehicle when the mishap took place, still you get the entire coverage of the damages. This type of policy is best suited for vehicles which are driven by many people at the same time, such as the vehicle which you have deployed in your business activities.

Liability coverage policy – In this, the vehicle is insured only for one driver. In case the mishap takes place when somebody other than the person under whose license the vehicle is insured, is driving it, the insurance provider is not liable to pay for the damages. This type of policy is best suited for those vehicles which are driven by only one person.

Normally, the cost of full coverage policies is a little more than the liability policies. It is always advisable to go for differential shopping, which is to compare the policies provided by different providers, so that you get the best policy at best prices.
Why Choose Online Car Insurance Quotes

Insure4USA.com works only with reputable insurance companies that offer the best solution for each client. Our online service allows you to get accurate quotes and compare real rates from multiple insurance companies side-by-side comparisons all in one place.

With the advent of internet, the job of finding an car insurance quote has become very easy. At the click of a button, you can get a number of companies in your vicinity which deal in such type of insurance policies. For availing the policy which best suites your needs, first write down your needs and then search for the insurance providers which are providing any policy which fulfills your requirements. After getting all the policy quotes, just compare them. In this way you can find the one which can save your money and can provide you the coverage which your vehicle needs.

You can also seek for the reviews of people from other source who are already associated with a particular policy which you are interested in. You can either talk to them in person by getting their contact details from the insurance provider, or you can ask the company for the public reviews of their policy holders. Sometimes after looking at the so many available options, you may get confused and uneasy in selecting a suitable policy.

Vehicle insurance

2009-11-20T15:37:00.000-08:00

Vehicle insurance (also known as auto insurance, car insurance, or motor insurance) is insurance purchased for cars, trucks, and other vehicles. Its primary use is to provide protection against losses incurred as a result of traffic accidents and against liability that could be incurred in an accident.

Public policy

In many jurisdictions it is compulsory to have vehicle insurance before using or keeping a motor vehicle on public roads. Most jurisdictions relate insurance to both the car and the driver, however the degree of each varies greatly.( where there is a blame there is a claim!)

A 1994 study by Jeremy Jackson and Roger Blackman[1] showed, consistent with the risk homeostasis theory, that increased accident costs caused large and significant reductions in accident frequencies.
Australia

In South Australia, Third Party Personal insurance from the Motor Accident Commission is included in the licence registration fee for people over 16. A similar scheme applies in Western Australia.

In Victoria, Third Party Personal insurance from the Transport Accident Commission is similarly included, through a levy, in the vehicle registration fee.

In New South Wales, Compulsory Third Party Insurance (commonly known as CTP Insurance) is a mandatory requirement and each individual car must be insured or the vehicle will not be considered legal. Therefore, a motorist cannot drive the vehicle until it is insured. A 'Green Slip,'[citation needed] another name CTP Insurance is commonly known by due to the colour of the pages the form is printed on, must be obtained through one of the seven main insurers in New South Wales.

In Queensland, CTP is a mandatory part of registration for a vehicle. There is choice of insurer but price is government controlled in a tight band.

These state based third party insurance schemes usually cover only personal injury liability. Comprehensive vehicle insurance is sold separately to cover property damage and cover can be for events such as fire, theft, collision and other property damage.
[edit] Canada

Several Canadian provinces (British Columbia, Saskatchewan, Manitoba and Quebec) provide a public auto insurance system while in the rest of the country insurance is provided privately. Basic auto insurance is mandatory throughout Canada with each province's government determining which benefits are included as minimum required auto insurance coverage and which benefits are options available for those seeking additional coverage. Accident benefits coverage is mandatory everywhere except for Newfoundland and Labrador. All provinces in Canada have some form of no-fault insurance available to accident victims. The difference from province to province is the extent to which tort or no-fault is emphasized.[2] Typically, coverage against loss of or damage to the driver's own vehicle is optional - one notable exception to this is in Saskatchewan, where SGI provides collision coverage (less than a $700 deductible, such as a collision damage waiver) as part of its basic insurance policy. In Saskatchewan, residents have the option to have their auto insurance through a tort system but less than 0.5% of the population have taken this option.[2]
[edit] Germany

Since 1939it is compulsory to have third party personal insurance before keeping a motor vehicle in all federal states of Germany. Besides, every vehicle owner is free to take out a comprehensive insurance policy. All types of car insurances are provided by several private insurers. The amount of insurance contribution is determined by several criteria, like the region, the type of car or the personal way of driving.[3]
[edit] Hungary

Third-party vehicle insurance is mandatory for all vehicles in Hungary. No exemption is possible by money deposit. The premium covers all damage up to HUF 500M (about €1.8M) per accident without deductible. The coverage is extended to HUF 500M (about €4.5M) in case of personal injuries. Vehicle insurance policies from all EU-countries and some non-EU countries are valid in Hungary based on bilateral or multilateral agreements. Visitors with vehicle insurance not covered by such agreements are required to buy a monthly, renewable policy at the border.[4]
[edit] Ireland

The Road Traffic Act, 1933 requires all drivers of mechanically propelled vehicles in public places to have at least third-party insurance, or to have obtained exemption - generally by depositing a (large) sum of money with the High Court as a guarantee against claims. In 1933 this figure was set at £15,000. The Road Traffic Act, 1961 [1] (which is currently in force) repealed the 1933 act but replaced these sections with functionally identical sections.

From 1968, those making deposits require the consent of the Minister for Transport to do so, with the sum specified by the Minister.

Those not exempted from obtaining insurance must obtain a certificate of insurance from their insurance provider, and display a portion of this (an insurance disc) on their vehicles windscreen (if fitted). The certificate in full must be presented to a police station within ten days if requested by an officer. Proof of having insurance or an exemption must also be provided to pay for your motor tax.

Those injured or suffering property damage/loss due to uninsured drivers can claim against the Motor Insurance Bureau of Ireland's uninsured drivers fund, as can those injured (but not those suffering damage or loss) from hit and run offences.
[edit] Romania

Romanian law mandates Răspundere Auto Civilă, a motor-vehicle liability insurance for all vehicle owners to cover damages to third parties.[5]
[edit] South Africa

South Africa allocates a percentage of the money from gasoline into the Road Accidents Fund, which goes towards compensating third parties in accidents.[6]
[edit] United Kingdom

In 1930, the UK government introduced a law that required every person who used a vehicle on the road to have at least third party personal injury insurance. Today UK law is defined by the Road Traffic Act 1988, which was last modified in 1991. The Act requires that motorists either be insured, have a security, or have made a specified deposit (£500,000 as of 1991) with the Accountant General of the Supreme Court, against their liability for injuries to others (including passengers) and for damage to other persons' property resulting from use of a vehicle on a public road or in other public places.

The minimum level of insurance cover commonly available and which satisfies the requirement of the Act is called third party only insurance. The level of cover provided by Third party only insurance is basic but does exceed the requirements of the act.

Road Traffic Act Only Insurance is not the same as Third Party Only Insurance and is not often sold. It provides the very minimum cover to satisfy the requirements of the Act. For example Road Traffic Act Only Insurance has a limit of £1,000,000 for damage to third party property - third party only insurance typically has a greater limit for third party property damage.

It is an offence to drive a car, or allow others to drive it, without at least third party insurance whilst on the public highway (or public place Section 143(1)(a) RTA 1988 as amended 1991); however, no such legislation applies on private land.

Vehicles which are exempted by the act, from the requirement to be covered, include those owned by certain councils and local authorities, national park authorities, education authorities, police authorities, fire authorities, health service bodies and security services.

The insurance certificate or cover note issued by the insurance company constitutes legal evidence that the vehicle specified on the document is insured. The law says that an authorised person, such as the police, may require a driver to produce an insurance certificate for inspection. If the driver cannot show the document immediately on request, then the driver will usually be issued a HORT/1 with seven days, as of midnight of the date of issue, to take a valid insurance certificate (and usually other driving documents as well) to a police station of the driver's choice. Failure to produce an insurance certificate is an offence. The HORT/1 is commonly known - even by the issuing authorities when dealing with the public - as a "Producer".

Insurance is more expensive in Northern Ireland than in other parts of the UK.[vague][citation needed]

Most motorists in the UK are required to prominently display a vehicle licence (tax disc) on their vehicle when it is kept or driven on public roads. This helps to ensure that most people have adequate insurance on their vehicles because an insurance certificate must be produced when a disc is purchased[citation needed].

The Motor Insurers' Bureau compensates the victims of road accidents caused by uninsured and untraced motorists. It also operates the Motor Insurance Database, which contains details of every insured vehicle in the country.
[edit] United States

In the United States, auto insurance covering liability for injuries and property damage done to others is compulsory in most states, though enforcement of the requirement varies from state to state. The state of New Hampshire, for example, does not require motorists to carry liability insurance (the ballpark model), while in Virginia residents must pay the state a $500 annual fee per vehicle if they choose not to buy liability insurance.[7] Penalties for not purchasing auto insurance vary by state, but often involve a substantial fine, license and/or registration suspension or revocation, as well as possible jail time in some states. Usually, the minimum required by law is third party insurance to protect third parties against the financial consequences of loss, damage or injury caused by a vehicle.

Some states, such as North Carolina, require that a driver hold liability insurance before a license can be issued.

Arizona Department of Transportation Research Project Manager John Semmens has recommended that car insurers issue license plates, and that they be held responsible for the full cost of injuries and property damages caused by their licensees under the Disneyland model. Plates would expire at the end of the insurance coverage period, and licensees would need to return their plates to their insurance office to receive a refund on their premiums. Vehicles driving without insurance would thus be easy to spot because they would not have license plates, or the plates would be past the marked expiration date.[8]
[edit] Coverage levels

Vehicle insurance can cover some or all of the following items:

* The insured party
* The insured vehicle
* Third parties (car and people)
* Third party, fire and theft
* In some jurisdictions coverage for injuries to persons riding in the insured vehicle is available without regard to fault in the auto accident (No Fault Auto Insurance)

Different policies specify the circumstances under which each item is covered. For example, a vehicle can be insured against theft, fire damage, or accident damage independently.
[edit] Excess

An excess payment, also known as a deductible, is the fixed contribution you must pay each time your car is repaired through your car insurance policy. Normally the payment is made directly to the accident repair "garage" (The term "garage" refers to an establishment where vehicles are serviced and repaired) when you collect the car. If one's car is declared to be a "write off" or "total loss"("write off" is commonly used in motor insurance to describe a vehicle the worth of which is less than the cost of repair), the insurance company will deduct the excess agreed on the policy from the settlement payment it makes to you.

If the accident was the other driver's fault, and this is accepted by the third party's insurer, you'll be able to reclaim your excess payment from the other person's insurance company.
[edit] Compulsory excess

A compulsory excess is the minimum excess payment your insurer will accept on your insurance policy. Minimum excesses vary according to your personal details, driving record and insurance company.
[edit] Voluntary excess

In order to reduce your insurance premium, you may offer to pay a higher excess than the compulsory excess demanded by your insurance company. Your voluntary excess is the extra amount over and above the compulsory excess that you agree to pay in the event of a claim on the policy. As a bigger excess reduces the financial risk carried by your insurer, your insurer is able to offer you a significantly lower premium.
[edit] Basis of premium charges
Main article: auto insurance risk selection

Depending on the jurisdiction, the insurance premium can be either mandated by the government or determined by the insurance company in accordance to a framework of regulations set by the government. Often, the insurer will have more freedom to set the price on physical damage coverages than on mandatory liability coverages.

When the premium is not mandated by the government, it is usually derived from the calculations of an actuary based on statistical data. The premium can vary depending on many factors that are believed to have an impact on the expected cost of future claims.[9] Those factors can include the car characteristics, the coverage selected (deductible, limit, covered perils), the profile of the driver (age, gender, driving history) and the usage of the car (commute to work or not, predicted annual distance driven).[10]
[edit] Gender

Men average more miles driven per year than women do, and consequently have a proportionally higher accident involvement at all ages. Insurance companies cite women's lower accident involvement in keeping the youth surcharge lower for young women drivers than for their male counterparts, but adult rates are generally unisex. Reference to the lower rate for young women as "the women's discount" has caused confusion that was evident in news reports on a recently defeated EC proposal to make it illegal to consider gender in assessing insurance premiums.[11] Ending the discount would have made no difference to most women's premiums.[citation needed]
[edit] Age

Teenage drivers who have no driving record will have higher car insurance premiums. However, young drivers are often offered discounts if they undertake further driver training on recognised courses, such as the Pass Plus scheme in the UK. In the U.S. many insurers offer a good grade discount to students with a good academic record and resident student discounts to those who live away from home. Generally insurance premiums tend to become lower at the age of 25. Senior drivers are often eligible for retirement discounts reflecting lower average miles driven by this age group.
[edit] Marital status

Drivers who are unmarried are often charged higher insurance premiums as opposed to married drivers.
[edit] Vehicle classification

Owners of sports cars, muscle cars, some sport utility vehicles, and motorcycles would have higher insurance premiums as opposed to compact cars, midsized cars, or luxury cars. However, in the case of motorcycles, the chance of causing extensive damage to other vehicles is relatively low (as opposed to damage to oneself) and thus liability insurance premiums are often lower.
[edit] Distance

Some car insurance plans do not differentiate in regard to how much the car is used. However, methods of differentiation would include:
[edit] Reasonable estimation

Several car insurance plans rely on a reasonable estimation of the average annual distance expected to be driven which is provided by the insured. This discount benefits drivers who drive their cars infrequently but has no actuarial value since it is unverified.
[edit] Odometer-based systems

Cents Per Mile Now[12](1986) advocates classified odometer-mile rates. After the company's risk factors have been applied and the customer has accepted the per-mile rate offered, customers buy prepaid miles of insurance protection as needed, like buying gallons of gasoline. Insurance automatically ends when the odometer limit (recorded on the car’s insurance ID card) is reached unless more miles are bought. Customers keep track of miles on their own odometer to know when to buy more. The company does no after-the-fact billing of the customer, and the customer doesn't have to estimate a "future annual mileage" figure for the company to obtain a discount. In the event of a traffic stop, an officer could easily verify that the insurance is current by comparing the figure on the insurance card to that on the odometer.

Critics point out the possibility of cheating the system by odometer tampering. Although the newer electronic odometers are difficult to roll back, they can still be defeated by disconnecting the odometer wires and reconnecting them later. However, as the Cents Per Mile Now website points out:

As a practical matter, resetting odometers requires equipment plus expertise that makes stealing insurance risky and uneconomical. For example, in order to steal 20,000 miles (32,000 km) of continuous protection while paying for only the 2,000 miles (3,200 km) from 35,000 miles (56,000 km) to 37,000 miles (60,000 km) on the odometer, the resetting would have to be done at least nine times to keep the odometer reading within the narrow 2,000-mile (3,200 km) covered range. There are also powerful legal deterrents to this way of stealing insurance protection. Odometers have always served as the measuring device for resale value, rental and leasing charges, warranty limits, mechanical breakdown insurance, and cents-per-mile tax deductions or reimbursements for business or government travel. Odometer tampering—detected during claim processing—voids the insurance and, under decades-old state and federal law, is punishable by heavy fines and jail.

Under the cents-per-mile system, rewards for driving less are delivered automatically without need for administratively cumbersome and costly GPS technology. Uniform per-mile exposure measurement for the first time provides the basis for statistically valid rate classes. Insurer premium income automatically keeps pace with increases or decreases in driving activity, cutting back on resulting insurer demand for rate increases and preventing today's windfalls to insurers when decreased driving activity lowers costs but not premiums.
[edit] GPS-based system

In 1998, Progressive Insurance started a pilot program in Texas in which drivers received a discount for installing a GPS-based device that tracked their driving behavior and reported the results via cellular phone to the company.[13] Policyholders were reportedly more upset about having to pay for the expensive device than they were over privacy concerns.[14] The program was discontinued in 2000.
[edit] OBDII-based system

In 2008, The Progressive Corporation launched MyRate to give drivers a customized insurance rate based on how, how much, and when their car is driven. MyRate is currently available in Alabama, Kentucky, Louisiana, Michigan, Minnesota, Maryland, New Jersey and Oregon. Driving data is transmitted to the company using an on-board telematic device. The device connects to a car's OnBoard Diagnostic (OBD-II) port (all automobiles built after 1996 have an OBD-II.) and transmits speed, time of day and number of miles the car is driven. There is no GPS in the MyRate device, so no location information is collected. Cars that are driven less often, in less risky ways and at less risky times of day can receive large discounts. Progressive has received patents on its methods and systems of implementing usage-based insurance and has licensed these methods and systems to other companies. Progressive has service marks pending on the terms Pay As You Drive and Pay How You Drive.
[edit] Auto insurance in the United States
[edit] Coverage available

The consumer may be protected with different coverage types depending on what coverage the insured purchases. Some states require that motorists carry liability insurance coverage to ensure that their drivers can cover the cost of damages to people or property in the event of an automobile accident. Some states, such as Wisconsin, have more flexible “proof of financial responsibility” requirements.[15]

In the United States, liability insurance covers claims against the policy holder and generally, any other operator of the insured vehicles, provided they do not live at the same address as the policy holder, and are not specifically excluded on the policy. In the case of those living at the same address, they must specifically be covered on the policy. Thus it is necessary, for example, when a family member comes of driving age that they be added to the policy. Liability insurance sometimes does not protect the policy holder if they operate any vehicles other than their own. When you drive a vehicle owned by another party, you are covered under that party’s policy. Non-owners policies may be offered that would cover an insured on any vehicle they drive. This coverage is available only to those who do not own their own vehicle and is sometimes required by the government for drivers who have previously been found at fault in an accident. Non-owners policies are also known as Named Operator Policies. The policies are useful for people whose drivers license has been suspended and they have to have insurance for their license to be reinstated.

Generally, liability coverage extends when you rent a car. Comprehensive policies ("full coverage") usually also apply to the rental vehicle, although this should be verified beforehand. Full coverage premiums are based on, among other factors, the value of the insured’s vehicle. This coverage, however, cannot apply to rental cars because the insurance company does not want to assume responsibility for a claim greater than the value of the insured’s vehicle, assuming that a rental car may be worth more than the insured’s vehicle. Most rental car companies offer insurance to cover damage to the rental vehicle. These policies may be unnecessary for many customers as credit card companies, such as Visa and MasterCard, now provide supplemental collision damage coverage to rental cars if the transaction is processed using one of their cards. These benefits are restrictive in terms of the types of vehicles covered.[16]
[edit] Liability

Liability coverage is offered for bodily injury (BI) or property damage (PD) for which the insured driver is deemed responsible. The amount of coverage provided (a fixed dollar amount) will vary from jurisdiction to jurisdiction. Whatever the minimum, the insured can usually increase the coverage (prior to a loss) for an additional charge.

An example of Property Damage is where an insured driver (or 1st party) drives into a telephone pole and damages the pole, liability coverage pays for the damage to the pole. In this example, the drivers insured may also become liable for other expenses related to damaging the telephone pole, such as loss of service claims (by the telephone company), depending on the jurisdiction. An example of Bodily Injury is where an insured driver causes bodily harm to a third party and the insured driver is deemed responsible for the injuries. However, in some jurisdictions, the third party would first exhaust coverage for accident benefits through their own insurer (assuming they have one) and/or would have to meet a legal definition of severe impairment to have the right to claim (or sue) under the insured driver's (or 1st Party's) policy.

In some jurisdictions: Liability coverage is available either as a combined single limit policy, or as a split limit policy:
[edit] Combined single limit

A combined single limit combines property damage liability coverage and bodily injury coverage under one single combined limit. For example, an insured driver with a combine single liability limit strikes another vehicle and injures the driver and the passenger. Payments for the damages to the other driver's car, as well as payments for injury claims for the driver and passenger, would be paid out under this same coverage.
[edit] Split limits

A split limit liability coverage policy splits the coverages into property damage coverage and bodily injury coverage. In the example given above, payments for the other driver's vehicle would be paid out under property damage coverage, and payments for the injuries would be paid out under bodily injury coverage.

Bodily injury liability coverage is also usually split into a maximum payment per person and a maximum payment per accident.

In the state of Oklahoma, insurance companies must carry at least state minimum liability limits of $25,000/$50,000/$25,000.[citation needed] If an insured driver hits a car full of people and is found by the insurance company to be liable, the insurance company will pay $25,000 of one person's medical bills but will not exceed $50,000 for other people injured in the accident. The insurance company will not pay more than $25,000 for property damage in repairs to the vehicle that the insured one hit.

In the state of Indiana, the minimum liability limits are $25,000/$50,000/$10,000,[citation needed] so there is a greater property damage exposure for only carrying the minimum limits.

Full coverage

Full coverage is the name commonly referred to as Comprehensive and Collision.

Collision

Collision coverage provides coverage for an insured's vehicle that is involved in an accident, subject to a deductible. This coverage is designed to provide payments to repair the damaged vehicle, or payment of the cash value of the vehicle if it is not repairable. Collision coverage is optional, however if you plan on financing a car or taking a car loan, the lender will usually insist you carry collision for the finance term or until your car is paid off. Collision Damage Waiver (CDW) or Loss Damage Waiver (LDW) is the term used by rental car companies for collision coverage.

Comprehensive

Comprehensive (a.k.a. - Other Than Collision) coverage provides coverage, subject to a deductible, for an insured's vehicle that is damaged by incidents that are not considered Collisions. For example, fire, theft (or attempted theft), vandalism, weather, or impacts with animals are types of Comprehensive losses.
[edit] Uninsured/underinsured Motorist coverage

Underinsured coverage, also known as UM/UIM, provides coverage if an at-fault party either does not have insurance, or does not have enough insurance. In effect, your insurance company pays your medical bills, then would subrogate from the at fault party. This coverage is often overlooked and very important. In Colorado for example, it was estimated in 2007 that 24% of drivers did not carry the state minimum liability limits required by law. Unfortunately, this number goes up significantly during recessions. In some areas, it is estimated that 1 out of every 3 drivers don't carry insurance. Usually your limits match your liability limits. Some insurance companies do offer um/uim in an umbrella policy.

In the United States, the definition of an uninsured/underinsured motorist, and corresponding coverages, are set by state laws.

Loss of use

Loss of use coverage, also known as rental coverage, provides reimbursement for rental expenses associated with having an insured vehicle repaired due to a covered loss.

Loan/lease payoff

Loan/lease payoff coverage, also known as GAP coverage or GAP insurance,[17][18] was established in the early 1980s to provide protection to consumers based upon buying and market trends.

Due to the sharp decline in value immediately following purchase, there is generally a period in which the amount owed on the car loan exceeds the value of the vehicle, which is called "upside-down" or negative equity. Thus, if the vehicle is damaged beyond economical repair at this point, the owner will still owe potentially thousands of dollars on the loan. The escalating price of cars, longer-term auto loans, and the increasing popularity of leasing gave birth to GAP protection. GAP waivers provide protection for consumers when a "gap" exists between the actual value of their vehicle and the amount of money owed to the bank or leasing company. In many instances, this insurance will also pay the deductible on the primary insurance policy. These policies are often offered at the auto dealership as a comparatively low cost add on that can be put into the car loan which provides coverage for the duration of the loan.

Consumers should be aware that a few states, including New York, require lenders of leased cars to include GAP insurance within the cost of the lease itself. This means that the monthly price quoted by the dealer must include GAP insurance, whether it is delineated or not. Nevertheless, unscrupulous dealers sometimes prey on unsuspecting individuals by offering them GAP insurance at an additional price, on top of the monthly payment, without mentioning the State's requirements.

In addition, some vendors and insurance companies offer what is called "Total Loss Coverage." This is similar to ordinary GAP insurance but differs in that instead of paying off the negative equity on a vehicle that is a total loss, the policy provides a certain amount, usually up to $5000, toward the purchase or lease of a new vehicle. Thus, to some extent the distinction makes no difference, i.e., in either case the owner receives a certain sum of money. However, in choosing which type of policy to purchase, the owner should consider whether, in case of a total loss, it is more advantageous for him or her to have the policy pay off the negative equity or provide a down payment on a new vehicle.

For example, assuming a total loss of a vehicle valued at $15,000, but on which the owner owes $20,000, is the "gap" of $5000. If the owner has traditional GAP coverage, the "gap" will be wiped out and he or she may purchase or lease another vehicle or choose not to. If the owner has "Total Loss Coverage," he or she will have to personally cover the "gap" of $5000, and then receive $5000 toward the purchase or lease of a new vehicle, thereby either reducing monthly payments, in the case of financing or leasing, or the total purchase price in the case of outright purchasing. So the decision on which type of policy to purchase will, in most instances, be informed by whether the owner can pay off the negative equity in case of a total loss and/or whether he or she will definitively purchase a replacement vehicle.

Towing

Car towing coverage is also known as Roadside Assistance coverage. Traditionally, automobile insurance companies have agreed to only pay for the cost of a tow that is related to an accident that is covered under the automobile policy of insurance. This had left a gap in coverage for tows that are related to mechanical breakdowns, flat tires and gas outages. To fill that void, insurance companies started to offer the car towing coverage, which pays for non-accident related tows.

Personal Property

Personal items in a vehicle that are damaged due to an accident would not be a covered under the auto policy. Any type of property that is not attached to the vehicle should be claimed under a homeowners or renters policy.

Behavior based insurance

The use of non-intrusive load monitoring to detect drunk driving and other risky behaviors has been proposed.A US patent application combining this technology with a usage based insurance product to create a new type of behavior based auto insurance product is currently open for public comment on peer to patent.

Car Insurance

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When you decide to buy car insurance for the first time in your life, don’t get nervous or confused because of the seemingly incomprehensible forms and other tricky items you have to complete for this transaction.

There are some essential requirements: you have to be of legal age, which of course varies from country to country (from 16 to 18 years old), you must have a driving licence, and your own car. Usually when you buy a car, you can also purchase the insurance from the same agency, but sometimes it is better to shop around for the best rates. Getting a quote is the easiest task: the Internet, newspapers, local Yellow Pages provide the best source of information.
Try to get at least three or four quotes to have a better view of the overall situation, thus you will be able to find the best coverage and the best price. After you have decided, it is required to register your car with the necessary documents including the insurance coverage, to get the licence plate.

Car insurance coverage can be purchased even if you are not a car owner, but you often rent cars or use your friends’, parents’ vehicles. However, this type of policy is rather expensive, and it focuses mainly on the car. As it is a limited coverage, when the damage is more serious and not entirely covered by your policy, the remaining uncovered damage will be entirely your liability. Be very careful of who you loan your car, as for example your uninsured friend makes an accident your policy will have to cover the claim, which of course brings about the increase of premiums and other restrictions. You are not liable in case your car is stolen and causes damage or gets into accident.
Let's see now the top 8 advices to find the best and cheapest car insurance:

1. Maintain your driving licence clean. Try to avoid speeding tickets and other errors. Careful and reliable drivers get the best rates, and get them more easily.

2. Accident and collision free history is another bonus.

3. Previous insurance policies will add much to your reliability factor, and will surely put you in a very favourable light. Don't let your insurance coverage have gaps: that is, try to renew it continually. Don't leave yourself uncovered!

4. Take an accident prevention course.

5. When completing the forms, try to take the highest deductible you can. This means an extra cost you can pay for damage if any. In this way you can also keep premiums low.

6. Choose a modest car. Luxurious vehicles have the most expensive insurance.

7. Combined vehicle discount. If you have more than one car in your household, take advantage of the discount policies and purchase a combined coverage, thus you can save a lot of money!

8. Metropolitan versus the suburbs. If you live outside the busy and crowded metropolitan centres you can get a significantly cheaper coverage.

Insurance companies have different modes of evaluation and various guidelines regarding the underwriting process. When you decide to apply for a policy try to find out the agency's requirements, thus you will have a clear picture which group of applicants you belong to. It is essential to keep your driving history clean, as the company can easily look back three or more years to check out many things about you. They will monitor your credit history, your previous insurance policies, as well as the vehicle records (tickets, collisions etc). If you have a clean and very safe driving record, higher deductibles, and you keep your car up to date (include for example anti-theft devices, airbags) companies are eager to offer you some discounts.

As time goes by, your coverage might face some new challenges. Therefore it is essential to have a policy which can be continuously updated. From time to time review if the original coverage still meets your requirements. You can marry someone, for example, and you may decide to insure more vehicles as well as more drivers in a household, or it can happen on the contrary: suddenly just one single vehicle will need a policy. On the other hand, you can just simply find a better offer, so consider switching at any time. A new policy can have many benefits: flexibility, better rates, more discounts.

Before choosing the policy try to check out the company you are buying from. The Internet, local phone books are excellent sources if you want to get some background information. You can also ask your friends or fellow drivers for some extra advice. Usually it is very important to purchase insurance from an agency which has full credibility on the insurance market and has a lot of sympathetic discounts. Some people prefer to choose a company next to their home or job, which might not offer the best rates, but allows you to make the payments on time.

After considering all the above mentioned issues carefully get out there and buy the best policy!