America’s love affair with the automobile is over a century old. For most Americans it’s not simply a mode of transportation. It is a purchase of self-expression, and often a status symbol. But the romance can come to a screeching halt when trying to insure it properly with a personal automobile policy. The terms and conditions of any auto policy can vary from company to company and from state to state. Liability insurance: This coverage protects the owner against losses from legal liability arising from bodily injury or property damage caused by an automobile accident. The coverage can be a single limit ($100,000 for each accident) or split limits such as $50,000 / $100,000 / $25,000 (per person / per accident for bodily injury / property damage). Medical payments coverage: This provision pays medical or funeral expenses because of bodily injury. The coverage is generally in increments of $1,000 to $5,000 up to $25,000 per person per accident. Physical damage coverage: This section of the policy is designed to cover physical damage to the insured auto. Collision covers, as the name implies, collision losses. Comprehensive (also known as other-than-collision) insurance covers losses from non-collision incidents; such as theft, fire, or   Read more…

Real estate in general has made a modest recovery since the housing fiasco in 2008. Residential housing has also enjoyed some appreciation in certain areas of the country. Your home is one of your largest assets, perhaps the largest, and it needs to be fully protected. The contents of a typical home: furniture, appliances, clothing, family
heirlooms, and other movable personal belongings,
represents a substantial additional investment. The unprotected loss (or partial loss) of a home and its contents to theft, fire, windstorm, or some other disaster, could be financially devastating. Many mortgage lenders require homeowners insurance, to protect the dwelling, as a condition of granting the mortgage. Additionally, everyone faces the risk of personal liability. For example, a visitor to the residence could slip and fall. Such accidents can result in court decisions awarding large sums to the injured party for medical expenses, and “pain and suffering.” In different parts of the country, there are exclusions that need to be considered like earth movement, water damage, flood damage, mold exclusion, war, nuclear hazard, neglect and intentional loss. You may need to buy supplemental coverage for certain events if it’s available. Home ownership is part of our culture. It’s also part of   Read more…

Protecting the property value of your home, cars, and personal items is just part of the equation in pricing insurance. Other items such as past claims, credit score or your driving record can influence the price or even a declination. It’s understandable to most why you need to check out your driving record for traffic tickets and DUIs. The ACLU is not going to come to your defense because your driving record was reviewed. Traffic ticket history generally lasts five years, so eventually your tickets and accidents begin to fall off with good behavior. In many states a basic traffic infraction can be taken care of by taking an online course and paying the ticket, but that doesn’t erase it from your record. If you feel you need to expunge your record, you’ll need to take the time to go to court and elect the traffic course as your civic option and your record will be clean. After all, if you have a lead foot or you’re constantly driving while intoxicated, your risk to the insurance company is significant. But most people are surprised to learn that insurance companies are looking at your credit worthiness. It’s not a hard credit   Read more…

There are two distinct classifications of property casualty agents: captive and independent. Captive agents generally represent one company and some of them may have the ability to sell other companies, but that’s the exception not the rule. Independent property casualty agents have access to dozens of insurance companies and quite often compare rates, company claims paying ability, policy provisions and electives like deductibles. But that’s still just a basic evaluation to help get you in the game in your decision making process. None of these due diligence items reflect the customer service experience during a claim or the support of the local agent. TV commercials promote saving hundreds of dollars in premiums if you switch to their company. Who doesn’t love to save money, especially on insurance? But be mindful that you have to have an “apples to apples” comparison of provisions and definitions to determine if the savings is truly a deal. But it’s not just about price; it can be about the aggravation. So you save $400 but you can’t talk to a real person in an office in your town. Or you go through the claims process after an accident and you’re brutalized by the experience. Sometimes   Read more…