Insurance Tip of the Week: ASK FOR DISCOUNTS

If you don't ask your carrier for discounts, they may not tell you they are available to you. 

Young And Single? You may pay more for car insurance than your young, married friends (as this Forbes article shows). As you get older, your rates go down naturally because insurance carriers view you as less of a risk. But you don't have to sit around waiting for your next birthday to reduce your premiums. Whether you are married or single, 20 years old or 60 years young, there are plenty of other discounts you may be eligible for. But (and here's the point) you have to ASK.

ASK YOUR AUTO INSURER ABOUT DISCOUNTS. If you don’t ask them about discounts, THEY MAY NOT TELL YOU THEY ARE THERE FOR YOU. Many of you have probably never asked, and assumed you automatically received any discounts you were eligible for. The answer to that is NO.

Common Discounts

If you have been with an auto insurance company for five years accident and ticket free, you are likely eligible for a good driver discount (but again, if you don’t ask, you may not get it). If your carrier won’t offer the discount to you, it may be time to shop around.

If you are not working, or work from home, and don’t drive your vehicle the average amount (typically 10,000 miles a year or more), make sure your insurer knows this and you may get a discount for low annual mileage. Same goes for keeping your vehicle in a garage, versus parked on the street.

These days, every dollar counts—so check ask about discounts, and see how much you could save, based on things like:

 > Vehicle Equipment (airbags, anti-theft system, daytime running lights, etc.)

 > Driving History & Habits

 > Driver's Education

 > Driver Affiliations (military, federal employee, memberships)

 > Customer Loyalty (multi-car, multi-policy)

Bundling your auto and home insurance policies can help, but sometimes not as much as you think, so the best answer to a better policy rate is this: SHOP AROUND, and when you find a policy that aligns with your coverage needs and your budget, get a letter from your carrier for your homeowners policy, auto policy, etc. that LOCKS IN that deductible for a set period. This is smart because often if an area, for example, has several storms causing extreme damage, their deductible or premium (or both) may automatically be increased to account for the increased risk to the insurer, without a big fancy invitation alerting you to these changes. Many of us are guilty of not reading the fine print. So, CHECK ON YOUR POLICY YEARLY. Do an annual review. Ask questions. Ask for discounts. And if you need help, give us a call.

303-834-1001

NEW! Ask Us Anything: What you need to know about Cam Newton's car accident

(Todd Sumlin/AP/The Charlotte Observer)

Last month, we rolled out an Ask Us Anything column in our newsletter, so that you can send us your insurance "what ifs" and "how abouts," and we'll respond with advice and recommendations on how you can save money and protect all of your most important stuff…. All without having to ask your insurance carrier (who may note even hypothetical questions in your file. We know - sneaky!).

The first question is:  The news about  Cam Newton's car accident made me wonder what the repercussions will be for the driver who hit him. Were I to cause an accident and injure someone, famous or not, can you tell me the policy limits and coverage that I should have to protect me against injury, damage to vehicle, etc.

Our answer:  There’s really no short sweet answer to how much coverage a person should purchase. Some professionals will recommend analyzing your assets and purchasing liability limits that are of a similar value. I believe it is more complicated than that. The Cam Newton accident is a great example as to why. If the driver of this vehicle were found “At-Fault” and liable for the damages he caused, and Cam had been paralyzed (or just simply unable to perform his job any longer due to the accident), the at-fault individual would have been liable for millions of dollars. 

....Let’s see, Cam is 25 years old. In July 2011, NBC Sports posted that Cam Newton was signed to a $22 Million deal, meaning that's his market worth. That's a whole lot of money! Again, if the individual who caused the accident and injury had been found at-fault, and had he ended Newton’s career, he’d be bankrupt. Even if Cam only had to miss a few games, if those injuries cost the driver the salary Cam gets paid per game, that’s still a lot of money. In this case, both parties were lucky, with Cam being released from the hospital with only minor injuries. But it's best to protect yourself against any of these scenarios.

I’m of the belief and hope that it is rare for an insured person to sideline the career or someone like Cam Newton, Peyton Manning, or worse yet, Russell Wilson. That said, the insurance we purchase is there to protect us -- not only from everyone else on the road, but from ourselves and damages we may cause as well. 

So, back to the question at hand: how much coverage is the right amount of coverage?  This is a risk tolerance and a cost analysis question that needs to be answered. What is your net worth, how much “risk” do you want to assume, and how much do you want to pay for the “risk transfer” (insurance jargon - blah!). The bottom line is, it’s a personal preference, and one that takes some thoughtful consideration. The majority of insurance buyers out there will spend 10 times longer determining how to get the most bang for their buck shopping for their next 65” curved LED TV than considering their coverage options. (Check this one out. Pretty sweet. I found that in 4.58 seconds…. BTW, did you know that’s Cam’s 40 yard dash time?)  ;o)

I hope this is somewhat helpful. For further clarification or help determining your personal net worth and the amount of risk you are able to assume vs. transfer to your insurance policy, give me a call. 

 

Have a question yourself? Send us your insurance questions and we’ll share our advice.

Your personal umbrella policy: Increased policy limits…and more

Accidents involving common, everyday activities may result in a worst-case scenario. Being held legally liable for injury to another person or damage to their property could exhaust your home or personal auto policy liability limits, and cause financial ruin to your family. A personal umbrella policy works hand in hand with your existing underlying insurance, adding a layer of liability limits to protect you in today’s litigious society.

Read more of this post

by Bill Taylor for The Cincinnati Insurance Companies

Filing claims can double your auto insurance premiums

Before filing an insurance claim, drivers should consider the effect it can have on their premiums. 

Many people file claims for less costly repairs, like cracked or chipped windshields or small dents. We like this article because it serves as a good reminder to think twice before filing a claim for something small that may cost you less, in the long run, to fix yourself.

The same applies to Homeowners insurance as well. (Read this post we recently shared on Facebook for tips on when not to file a home insurance claim.) 

Insurance is designed to be used for catastrophic events, not to be used as a "maintenance policy." Often, it's in your best interest to check with your agent before filing a claim, and to actually pay it out of pocket instead of turning the claim in to your carrier. The reality of the matter is, most consumers want to get every penny that they can out of their insurance carrier, because they feel taken advantage of by paying so much into their policy premiums and getting nothing out of it. We can't tell you how many times we hear "that's why I have insurance," from our clients and friends. Still, our job as agents is to educate and have them think twice, and consider the consequences of turning in too many claims, which is not to their advantage and will cost more in increased premiums costs in the long run.

Auto Insurance: Dirty Secrets In Your Policy

If you’re buying your insurance in “15 minutes or less,”
you’re missing something. Your agent should be spending
more than 15 minutes reviewing your individual information
to make sure you’re covered the way you think you are.

Does your policy cover theft? Hail damage? Falling objects? Your pet?

You pay your premiums every month, but may be surprised to see what items are NOT covered by your auto insurance if you don't have a comprehensive policy. Read on for questions to ask about your coverage, to make sure that saving a few bucks on your premium won't cost you hundreds or thousands when you make a claim.

Many people are surprised to learn that their liability only auto insurance policies include car insurance exclusions that limit coverage under certain circumstances. It's important to read your policy carefully, or work with a trusted agent who can make you aware of your policy’s exclusions.

Comprehensive Coverage Is Smart For Most People:

Comprehensive car insurance covers (non-collision) damage, can help pay for your car’s repair, and can help you replace it entirely in the event of a total loss like theft, but does not cover collision, towing/roadside assistance, rental, and personal property.

In terms of optional coverage, comprehensive is one of the last you should give up.  Comprehensive coverage – coverage for anything other than a collision – only amounts to a small portion of your auto insurance bill, but protects you against a wide number of events, including most of those listed below.

Be Aware of These Common Exclusions To Your Standard (Non-Comprehensive) Auto Insurance Policy:

Standard auto policies do not cover theft

• Theft: 23% of auto policies don’t cover theft. If you don’t have comprehensive coverage, your policy doesn’t cover auto theft. With a vehicle stolen every 28 seconds in the U.S. (according tot the FBI), this is an important exclusion to consider when choosing coverage. Yet still, nearly one quarter of auto policies do not include comprehensive coverage, and so are not covered in case of theft. This is a very common misconception. Many people forgo comprehensive coverage as their cars age and depreciate, in order to save money. A friend recently became aware of this exclusion the hard way, after her insurance carrier denied coverage following the theft of her car, reminding me that this is a major exclusion that many people aren’t aware of (especially those who shop for car insurance online and don’t get the guidance of an agent). Her story illustrates the value of not just price shopping, but also reviewing everything with a broker to understand your coverage and gaps. 

• Falling Objects, Fire, Vandalism, Natural Disasters: If you’ve ever had your car keyed, had a branch fall on your hood, or had your car broken into, you’ve leaned this one the hard way. Damage caused to your car (like a key taken to your paint job or slashed tires) by a break-in won’t be covered by your policy unless you have comprehensive coverage. Nor will anything not originally included in your vehicle, such as a detachable GPS or other portable electronics, your laptop, wallet, after-market sound system, etc. These devices may be covered under your home or renter’s insurance instead.

• Glass Damage: Glass damage caused by a break-in, a rock hitting your windshield, or Mother Nature herself, isn’t covered under the average policy.

• Pet: Injury to a pet from an accident you’re involved in may or may not be covered by your policy. Check with your insurer to see if you have this protection available.

• Hail: Almost 70,000 total claims in Colorado alone were filed due to hailstorms last summer, and nearly half of those claims were for vehicles. The Rocky Mountain Insurance Information Association (RMIIA) estimated that more than $85 million of the damages from those storms were vehicle-related. Hail claims are an example of optional coverage that compensates policyholders for weather-related damage. In light of recent reports on increasingly severe weather across the U.S., choosing comprehensive coverage or an added hail policy is likely a smart move.

• Time Limits: If someone is injured, report the claim immediately! Your policy limits the period of time in which you can file a claim, usually beginning from the time you are aware of the damage.

Buying Insurance Online: Beware of Gaps and Exclusions:

With the recent news that Walmart is entering the auto insurance business, many people may be attracted by the claim on their partner site that they offer customized coverage, unbiased provider comparisons, and simplicity in shopping for a policy. This is, however, the same service you get with a reputable independent broker.

What you should consider before buying online is that you’ll have to spend a LOT of your own time reading and educating yourself on your policy coverage and any gaps or exclusions you may be selecting along with the lowest price quote. Without an agent who is well educated in the insurance industry to guide your purchase, you may end up with a good price, but at a higher long-term cost.

Your agent can guide you through the exclusions on your policy and help you to choose one that ensures you’ll be well covered.