Tag: insurance

A Parent’s Guide to Insurance for College Students

Chris

It’s that time of year again: football season, fall weather, and children leaving for college! It’s an exciting time; however, it’s important to address some insurance issues that could arise. Here are some helpful tips to discuss with your insurance professional:

Auto Insurance:

1. Will your child be taking a vehicle to college with them? If so, it’s important to let your insurance company know so they can update the garaging address for that vehicle. Since rates are dependent upon the zip code of the garaging address, you may see a slight rate change.

2. If you’re sending your child to college without a vehicle, let your insurance company know! Many companies offer discounts for students that are at least 100 miles away from home (attending school) without a vehicle. Furthermore, it’s imperative that you don’t remove your child from your auto insurance policy (even if they don’t have a vehicle at school) – they will still need coverage when they are home for the holidays (and also in the event they drive a friend’s vehicle who may not have insurance on their vehicle).

3. Lastly, many companies offer a discount for maintaining at least a ‘B’ average (whether or not they took a car to school). Just be ready to furnish a copy of their most recent report card showing their grade point average to the insurance company.

Renters Insurance:

1. Providing coverage for your children’s belongings in their dorm or at their residence at school can be a tricky task. Each company will treat this situation differently, so it’s important to discuss with your insurance professional. Typically, 10% of the ‘personal property’ limit on the parent’s home or renters insurance policy will extend to an ‘off premise’ location. However, there are sub-limits and restrictions on certain items (jewelry, computers, etc.). In some instances, this 10% extension is adequate for the student. If it’s not (or if your insurance company has other restrictions), it’s best to purchase a renters insurance policy for the student. Renters insurance policies can be purchased for about $10/month.

As exciting as the fall season can be, it’s important to take a few minutes to ensure that you and your children are covered properly. As always, please read the policy forms for exact coverage details and discuss your specific situation with your insurance professional.

IL Passes Rideshare Insurance Law – Is it enough?

Chris

“Failure is not fatal, but failure to change might be”. – John Wooden

The IL legislature passed legislation that provides regulation for transportation networking companies (TNCs) – which should eliminate many insurance gaps, according to the Property Casualty Insurers Association of America. The measure will require background checks on drivers, vehicle inspections and chauffeur licenses for drivers who work more than 36 hours in any two-week period. It also requires clear disclosure to TNC drivers about insurance coverages.

The key component of the legislature is that the commercial liability insurance policy will be the primary policy from the time the driver’s app is on or he/she is available to accept a passenger. The bill has been sent to the governor for approval.

The goal of the legislation is two-fold:

1. Increase clarity on which policy is primary (personal auto vs. commercial).

2. Avoid increases in personal insurance rates

 

While increased legislation usually creates more problems than it solves, the goal of this legislation is noble. Ideally, an insurance company would step up and provide a unique and differentiated product customized for this exposure; however, it doesn’t appear as though there is any interest from any company. As the quote from John Wooden at the beginning of this post emphasizes, failure to change may be fatal. I’m hopeful that insurance companies become more flexible with their products and policies offered in this ever-changing world. It’d be a shame to let the barbaric coverage forms provided by insurance companies hinder the entrepreneurial spirit of this country.

Golf Season is here! Does my insurance provide coverage if I hit someone!?

Chris

golfSpring is upon us (finally) and that means golf season is here!  I’ve been asked by a fellow golfing companion and a club pro the following question twice in the past few weeks, so I thought it may be worthy of a short blog post.

If I hit someone or hit (and damage) their car – does my personal insurance apply or is the golf course responsible?

Fore!!  Yes, if you hit the drive – you are liable for any subsequent damage.  The golf course may get named in the lawsuit – if it reaches court – but they are not going to be liable for any resulting damage from a golf ball that you hit.  You can try and run or hide; however, you are responsible for subsequent damages.

Coverage is afforded under the personal liability portion of your homeowners policy.  Generally, no deductible applies for this coverage.  If coverage is exhausted on the homeowners insurance policy, a personal umbrella policy may apply if needed.  There is no coverage under your personal auto policy (another common misconception)!

As always, it’s best to consult with your insurance professional to discuss any potential claim or coverage scenarios.  Furthermore, a golf lesson and some practice on the driving range may be the best way to avoid this claim scenario.

Does it matter what insurance company you do business with?

Chris

As an independent agency, we have many options and companies to work with.  Ultimately, this provides a great benefit to our customers – one advisor/professional to work with who has dozens of companies to choose from to find the best coverage and rates for you.  First, the customer needs to decide what is most important to them when choosing an insurance company.  Some factors to consider are as follows:

  1. Claims Service – Yes, different companies have different levels of claim service.  Some companies make the process very easy and provide great support during the process; however, other companies pay claims begrudgingly and can make the process painful.  This is one of our highest priorities when choosing a market for you because a successful claim settlement equals a happy customer.

  2. Price – Price is a dominant force in our industry and is usually a consumer’s top concern.  Price does matter but it is important to verify that other factors are not being omitted to create a lower price – specifically coverage (amongst others).

  3. Coverage Options – Do you have a unique risk exposure? Does the company you have your insurance with offer all the coverage you need?  These are important questions to consider when electing to place business with a company.

  4. Deductible Options – Many companies are increasing home deductibles and limiting deductible options.  If the company you’re with doesn’t have a suitable deductible for you, it may be worthwhile to ask your insurance advisor to explore other options.

  5. Size & Financial Stability – As an independent agency, we represent small, local mutual companies to Fortune 100 companies.  Size does matter – to a point.  It’s important that the company you’re with has enough capital surplus to cover any catastrophic events that may occur.  Furthermore, it’s important that the company allocates enough resources to critical functions of the company (i.e. customer service/support, claims, underwriting, etc.).  With that said, bigger does not always mean better.  We represent some regional companies that are AM Best A+ rated (financially stable) and provide good service, claims service, and pricing (if not better).

As always, it’s important to discuss these factors and any other factors that may apply to you with your insurance advisor to provide the best fit for you.  Every individual and family is different and subsequently, has different needs.  As an independent insurance agency, we feel that our flexibility and options provides a massive competitive advantage and most importantly, the best options for you.

8 Things to Know About Home and Auto Insurance

Chris

Fun factHere are 8 interesting facts about home and auto insurance (courtesy of www.insurancejournal.com).

  1. New Jersey is the most expensive state for auto insurance where the average expenditure is $1,183.95.  Idaho is the least expensive with ana verage expenditure for coverage at $535.15. — Insurance Information Institute

  2. The average auto liability claim for property damage was $3,073 in 2012, while the average auto liability claim for bodily injury was $14,653.  That same year, the average collision claim was $2,950, and the average comprehensive claim was $1,585. (ISO)

  3. 25% percent of consumers rent their primary residence; however, 46% of renters remain uninsured.  (J.D. Power)

  4. In 2013, the homeowners industry will generate its first statutory underwriting profit since 2007.  The GAAP homeowners results from 2011-2013 for four of the largest homeowners insurance companies (by market share) reported an aggregate homeowners combined ratio of 79.6% for 2013.  (Fitch Ratings)

    1. It’s important to note that this may not necessarily mean a decrease in homeowners premium, but if profitability can be attained for the full-year 2014, I would expect to see property premiums decrease.

  5. The most frequent type of homeowners claims are related to wind or hail (especially in WI!); the costliest are related to fire, lightning or debris removal.  About one in 20 insured homes have a claim each year. (III/ISO)

    1. About one in 50 insured homes have a property damage claim related to wind or hail each year.

    2. About one in 65 insured homes have a property damage claim caused by water damage or freezing each year.

    3. About one in 200 insured homes have a property damage claim due to theft each year.

    4. About one in 230 insured homes have a property damage claim related to fire, lightning, or debris removal ever year. (III/ISO)

  7. One in 800 homeowners policies have a liability claim related to the cost of lawsuits for bodily injury or property damage that the policyholder or family members cause to others. (III/ISO)

  8. Dog bites account for more than one-third of all homeowners insurance liability claim dollars paid out in 2012, costing more than $489 million.  (III)