IT'S GOOD TO KNOW
AUTO INSURANCE
Auto Insurance
Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy. It is important that you read your policy and have an agent that understands coverages. If you are in an accident and you are at fault you may be sued for damages and if your Auto liability coverage is not enough the courts may make you liquidate personal assets to cover the damages that the court awards the other person.Auto insurance provides property, liability and medical coverage:
Property coverage pays for damage to or theft of your car. You will also have a deductible.
Liability coverage pays for your legal responsibility to others for bodily injury or property damage.
Medical coverage pays for the cost of treating injuries, rehabilitation and sometimes lost wages and funeral expenses. This will cover passengers in your car as well.
An auto insurance policy is comprised of six different kinds of coverage.
1. Bodily Injury Liability
This coverage applies to injuries you, the designated driver or policy holder cause to someone else. If you cause injury to another person while driving a car that someone else owns you and family members listed on the policy are also covered if you have their permission.
Liability insurance coverage is one of the most important coverages to have. If you are involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets such as your home and savings. You should always cover at least what you are worth to protect your assets from being lost by a court order.
2. Medical Payments or Personal Injury Protection (PIP)
This coverage pays for the treatment of injuries to the driver and passengers of the policyholder's car. At its broadest, PIP (Personal Injury Protection) can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident. It is important if you do not have adequate health insurance to help with emergency room expenses.
3. Collision
This coverage pays for damage to your car resulting from a collision with another car, object or hydroplaning.Collision coverage is generally sold with a deductible of $250 to $5,000-the higher your deductible, the lower your premium, however check with different insurance providers because the discounts for higher deductible vary. Even if you are at fault for the accident, your collision coverage will reimburse you for the costs of repairing your car, minus the deductible. If you're not at fault,the other at fault driver’s liability insurance should pay for your damages.
4. Property Damage Liability
This coverage pays for damage you (or someone driving the car with your permission) may cause to someone else's property. Usually, this means damage to someone else's car, but it also includes damage to anything that the car damages including buildings or other structures.
5. Comprehensive
This coverage reimburses you for loss due to theft or damage caused by something other than a collision with another car or object, such as fire,falling objects, explosion, earthquake, windstorm, hail, flood, vandalism,riot, or contact with animals such as birds or deer.Comprehensive insurance usually ranges from a $500 to $2,500 deductible, though you may want to opt for a higher deductible as a way of lowering your premium.Comprehensive insurance will also reimburse you if your windshield is cracked or shattered. States do not require that you purchase collision or comprehensive coverage,but if you have a car loan, your lender may insist you carry it until your loan is paid off. Once the lien is satisfied the owner of the car may elect not to carry this coverage.
6. Uninsured Motorist Coverage
This type of coverage will cover you and your family members if you are in an accident and the other at fault driver does not have any insurance coverage. This coverage is mandated by the state and all vehicles must be covered with at least the state minimum of $25,000 per person $50,000 per accident and $25,000 property damage.
7. Under insured Motorist Coverage
This coverage will reimburse you, a member of your family, or a designated driver if one of you is hit by an uninsured or hit-and-run driver.
Financial responsibility and drive legally without insurance
All states have financial responsibility laws. This means that even in a state that does not require liability insurance, you need to have sufficient assets to pay claims if you cause an accident. If you don't have enough assets, you must purchase at least the state minimum amount of insurance. Insurance exists to protect your assets. Trying to see how little you can purchase can be very shortsighted and dangerous because your entire net worth may be at risk of a court judgment awarding a victim and paid with your assets.Financing the purchase of a car, your lender may require comprehensive and collision insurance as part of the loan purchase agreement.
Leasing A Car
If you lease a car, you will still need your own auto insurance policy. The auto dealer or bank that is financing the vehicle will require you to buy collision and comprehensive coverage normally with specific limits and deductibles. You'll need to buy these coverages in addition to the required coverage. Normally the lender will require higher limits than what is available under minimum coverage. The only exception to this may be the Under insured coverage.
When financing your car, your lender may require comprehensive and collision insurance as part of the loan agreement.
Collision covers the damage to the car from an accident with another automobile or object.
Comprehensive covers a loss that is caused by something other than a collision with another car or object, such as a fire or theft or collision with something other than a vehicle such as a tree.
The leasing company may also require "gap" insurance. This type of coverage protects you if you have an accident and your leased car is damaged beyond repair or "totaled". If there is a difference between the amount that you still owe on the auto and the payout from your insurance company this is referred to as the “gap”. This happens because the insurance valuation is based on the car's actual cash value which takes into account depreciation. The difference between the two amounts is known as the "gap."On a leased car, the cost of gap insurance is generally rolled into the lease payments or is an additional cost option on a new car policy. In most cases, the auto dealer buys a master policy from an insurance company to cover all the cars it leases and charges you for the gap coverage called a waiver." This means that if your leased car is totaled, you won't have to pay the dealer or loan institution the gap amount.If you have an auto loan instead of a lease, you may want to buy gap insurance to protect yourself from having to come up with the gap amount if your car is totaled. This type of coverage is usually only offered for cars that are new and only for a specified time period, mostly no more than three years. Not all companies offer this type of coverage. It is best to contact us because we are an insurance broker and can shop for the best deals and coverages.
Renting a Car
All cars driven on the public highway require at least liability insurance coverage. Rental companies offer coverage on the rented vehicle, however you may not need the coverage offered by the rental company if you have full coverage, collision and comprehensive coverage on your existing vehicle. Check with your insurance company to understand just what they will cover on a rented vehicle. Before you rent a car:
1. Contact your insurance company or your agent.
In most cases, the coverage and deductibles you have on your personal auto policy would apply to a rental car, providing it's used for pleasure and not business. If you don't have comprehensive and collision coverage on your own car, you will have to add it to your existing policy before you will be allowed to rent a vehicle, or purchase it from the rental company. Most of the time it is cheaper to add the extra coverage to your existing policy and then drop the extra coverage after you complete the rental. You will only be charged for the days you have the extra coverage.
2. Call your credit card company.
Find out what insurance your card provides. Make sure you understand what they will cover. I many cases it may be better to increase your existing policy;coverage may vary.If you don't have auto insurance, you will need to buy coverage at the car rental counter. The following coverages are available for you to purchase from the rental company.
1. Collision Damage Waiver (CDW).
Sometimes called a Loss Damage Waiver (LDW), this coverage relieves you of financial responsibility if your rental car is damaged or stolen. The CDW maybe void, however, if you cause an accident and charged with speeding or driving while intoxicated. If you have comprehensive and collision on your own car, you may not need to purchase this coverage.
2. Liability Insurance.
This provides excess liability coverage of up to a maximum set by the rental company. Rental companies are required by law to provide the minimum level of liability insurance. Generally, this does not offer enough protection in a serious accident. You may have adequate liability coverage on your vehicle and may not need this coverage. If you also carry excess liability coverage called an “umbrella” policy that covers your home and auto,you may consider forgoing this additional insurance. If you don't own a car,and rent cars often, consider purchasing a non-owner liability policy. Frequent car renters sometimes find this more cost-effective than constantly paying for the extra liability coverage.
3. Personal Accident Insurance.
This provides coverage to you and your passengers for medical/ambulance bills.This type of insurance is not expensive but may be unnecessary if you are covered by health insurance or have adequate medical coverage under your auto policy.
4. Personal Effects Coverage.
This provides coverage for the theft of personal items in your car. You may have coverage through your homeowners or renters insurance. This form of property coverage may cover items stolen from the car, minus your deductible.You may need to have receipts or other proof of ownership.
Some rental car companies may check your credit and driving history and may deny coverage. Check with the rental car company to find out its policy.
Cancellation and Non-renewal of a policy
There is a big difference between when an insurance company cancels a policy and when it chooses not to renew it. Normally an insurance company does not cancel a policy that has been in force for more than 60 days except:
If you fail to pay the premium.
You have committed fraud or made serious misrepresentations on your application.
Your driver's license has been revoked or suspended.
Non-renewal is a different matter. Either you or your insurance company can decide not to renew the policy when it expires.
Classic Car Insurance
Classic Car insurance is very similar to regular car insurance, but is often less expensive because the vehicle that may be insured is not used for every day driving.There are a number of factors that qualify vehicles for Classic Auto Insurance,including the model year, annual miles driven, and customizations
Vehicles for Classic Car Insurance
Antique & Classic Cars
Modern Collector Vehicles
Modified Vehicles
Antique Tractors
Classic Military Vehicles
Classic Trucks & Utility Vehicles
· Vintage Motorcycles & Scooters
· Retired Commercial Vehicles
· Collector Trailers
· Vehicles Under Construction
· Motorsports Vehicles
HOME INSURANCE
Home Insurance
Homeowners insurance provides financial protection against disasters. A standard policy insures the home itself and the things you keep in it.
Homeowners insurance is a package policy. This means that it covers both damage to your property and your liability or legal responsibility for any injuries and property damage you or members of your family cause to other people.
Damage caused by most disasters is covered but there are exceptions. The most significant are damage caused by floods, earthquakes and poor maintenance. You must buy two separate policies for flood and earthquake coverage.Maintenance-related problems are the homeowners' responsibility.
There are some basic essential types of coverage homeowners insurance policy include.
1. Coverage for the structure of your home.
This part of your policy pays to repair or rebuild your home if it is damaged or destroyed by fire, hurricane, hail, lightning or other disaster listed in your policy. It will not pay for damage caused by a flood, earthquake or routine wear and tear. When purchasing coverage for the structure of your home,it is important to buy enough to rebuild your home.Most standard policies also cover structures that are detached from your home such as a garage, tool shed or gazebo.
2. Coverage for your personal belongings.
Your furniture, clothes, sports equipment and other personal items are covered if they are stolen or destroyed by fire, hurricane or other insured disaster.Most companies provide coverage for 50% to 70% of the amount of insurance you have on the structure of your home. The best way to determine if this is enough coverage is to conduct a home inventory.
Expensive items like jewelry, furs and silverware are covered, but there are dollar limits if they are stolen. To insure these items to their full value,purchase a special personal property endorsement or floater and insure the item for its appraised value. Coverage includes accidental disappearance, meaning coverage if you simply lose that item.
Trees, plants and shrubs are also covered under standard homeowners insurance.Generally you are covered for 5% of the insurance on the house up to about $500 per item.
3. Liability protection.
Liability on a homeowner’s policy covers you against lawsuits for bodily injury or property damage that you or family members cause to other people. It also pays for damage caused by your pets. So, if your son, daughter or dog accidentally ruins your neighbors’ property, you are covered. However, if they destroy your property, you are not covered.
The liability portion of your policy pays for both the cost of defending you in court and any court awards -- up to the limit of your policy. You are also covered not just in your home, but anywhere in the world.
Liability limits generally start at about $100,000. We recommend that you purchase at least $300,000 worth of protection. This is a very inexpensive coverage on this form of policy. Some people feel more comfortable with even more coverage. You can purchase an umbrella or excess liability policy which provides broader coverage, including claims against you for libel and slander,as well as higher liability limits.
Your policy also provides no-fault medical coverage. In the event a friend or neighbor is injured in your home, he or she can simply submit medical bills to your insurance company. This way, expenses are paid without their filing a liability claim against you.
This pays the additional costs of living away from home if you can't live there due to damage from a fire, storm or other insured disaster. It covers hotel bills, restaurant meals and other living expenses incurred while your home is being rebuilt. Coverage for additional living expenses differs from company to company. You may be able to increase this coverage, however, for an additional premium. Some companies sell a policy that provides an unlimited amount of loss-of-use coverage -- for a limited amount of time.
If you rent out part of your house, this coverage will also reimburse you for the rent that you would have collected from your tenant if your home had not been destroyed.
BUSINESS INSURANCE
Business Insurance
Insurance companies selling business insurance offer policies that combine protection from all major property and liability risks in one package, however some carriers may off some coverages separately. One package purchased by small and mid-sized businesses is the business owners’ policy (BOP). Package policies are created for businesses that generally face the same kind and degree of risk. Larger companies might purchase a commercial package policy or customize their policies to meet the special risks they face.
BOPs include:
1. Property insurance for buildings and contents owned by the company -- there are two different forms, standard and special, which provides more comprehensive coverage.
2. Business interruption insurance, which covers the loss of income resulting from a fire or other catastrophe that disrupts the operation of the business. It can also include the extra expense of operating out of a temporary location.
3. Liability protection, which covers your company's legal responsibility for the harm it may cause to others. This harm is a result of things that you and your employees do or fail to do in your business operations that may cause bodily injury or property damage due to defective products,faulty installations and errors in services provided.
BOPs do not cover professional liability, auto insurance, workers compensation,health or disability insurance. You'll need separate insurance policies to cover professional services, vehicles and your employees. Since we are an insurance broker and can shop for the best deals and coverages you may find it easier and more beneficial to work with us.
Commercial Auto Insurance
Most small business owners need the same kind of insurance coverages for the business vehicle that they do for a car used for personal travel -- liability, collision and comprehensive, medical payments (known as personal injury protection) and coverage for uninsured motorists. In fact, many business people use the same vehicle for both business and pleasure. If the vehicle is owned by the business, make sure the name of the business appears on the policy as the "principal insured" rather than your name. This will avoid possible confusion in the event that you need to file a claim or a claim is filed against you.
Whether you need to buy a business auto insurance policy will depend on the kind of driving you do. A good insurance agent will ask you many details about how you use vehicles in your business, who will be driving them and whether employees, if you have them, are likely to be driving their own cars for your business. You may still be liable if an employee is running errands for the business and gets into an accident.
While the major coverages are the same, a business auto policy differs from a personal auto policy in many technical respects. Bottom line a personal vehicle policy may not cover a vehicle used in business if you have a claim.
Home Business Coverage
If you're running a business from your home, your homeowners’ insurance policy may not have enough insurance to protect your business adequately. A typical homeowners’ policy provides only a small amount of coverage for business equipment, which is usually not enough to cover all of your business property.You may also need coverage for liability and lost income. Insurance companies differ considerably in the types of business operations they will cover under the various options they offer. So it's wise to shop around for coverage options as well as price.
Regardless of the type of policy you choose, if you're a professional working out of your home, you probably need professional liability insurance. Some types of in-home businesses, such as those that make or sell food products or sell home-made personal care products, may have to buy special policies.
To insure your business, you have three basic choices, depending on the nature of your business and the insurance company use.
In-Home Business Policy/Program.
An in-home business policy provides more comprehensive coverage for business equipment and liability than a homeowner’s policy endorsement. These policies, which may also be called in-home business endorsements, vary significantly depending on the insurer.
Business Owners Policy (BOP).
Created specifically for small-to-mid-size businesses, this policy is an excellent solution if your home-based business operates in more than one location. A BOP, like the in-home business policy, covers business property and equipment, loss of income, extra expense and liability. However, these coverages are on a much broader scale than the in-home business policy.
A BOP doesn't include workers compensation, health or disability insurance. If you have employees, you'll need separate policies for these coverages. It is best to contact us because we are an insurance broker and can shop for the best deals and coverages.
Business Owners Package
A business owner policy packages all required coverage a business owner should need. BOPs will include business interruption insurance, property insurance, vehicle coverage, liability insurance,and vandalism coverage. Based on your company’s specific needs, you can tailor coverages in a BOP.
Typically, a business owner will save money by choosing a BOP bundle of services over individual coverage’s.
BOPs Coverages typically include:
Property insurance for buildings and contents owned by the company -- there are two different forms, standard and special, which provides more comprehensive coverage.
Business interruption insurance, which covers the loss of income resulting from a fire or other catastrophe that disrupts the operation of the business. It can also include the extra expense of operating out of a temporary location.
Liability protection, which covers your company's legal responsibility for the harm it may cause to others. This harm is a result of things that you and your employees do or fail to do in your business operations that may cause bodily injury or property damage due to defective products, faulty installations and errors in services provided.