So, what’s all this talk about saving money on car insurance really mean? How do you know what’s best for you? There’s much truth in that old line, “You get what you pay for.”
Everyone’s concerned with the price of everything in this economy. What you need to keep in mind is that when it comes to buying car insurance, cheaper is not usually better. Here’s a look at the 5 Factors we believe you should consider in getting the best auto insurance:
Price – Sure, let’s face it, everyone wants to pay less, and many insurance companies are catering to and feeding that desire with clever and cute ads offering little more than savings. It’s a familiar pitch....save here, save there, save on this, save on that. Truth is, in the same breath, there’s little discussion of coverage and service, two critical factors that matter, when they matter. Read on.
Price – Yep, here again, it’s wonderful, we’re told, to save money in these difficult and challenging economic times, especially on a bill that you have to pay each and every month. If you’re looking to keep to a budget where every expense matters, you’re probably looking to save wherever you can. Someone tells you you’ll save money, and you listen up.
Price – But wait, there’s more? Price is very important when buying auto insurance, but is it the most important factor, and does low cost really save you in the end? Well, it depends.
Coverage – We’ve learned this time and again...coverage doesn’t matter, until it does. And when does it matter? Well, think about personal liability, uninsured or underinsured motorists driving into you, property damage, car repairs, medical expenses, rental car expense, the possibility of a lawsuit. The list goes on.
Low cost auto policies. If you’re not careful, and don’t understand the fine print, you could wind up paying less and getting less. Smart consumers look for value with innovative auto policy features that really matter when you need them most - things like options and bonuses that go beyond the mandatory coverage. Such options can include safe driver and safe car discounts, young driver and senior driver discounts, rental car coverage and more.
Service – Just like coverage, service doesn’t matter until it does. There’s a lot to be said for the relationship you have with a local insurance agent who takes the time to thoroughly understand your needs and tailor an auto policy that’s best for you, and to be there when you need a fast response if you have a claim. It’s peace of mind and the assurance that you’re covered. It’s just worth more.
So, when you ask yourself, “Am I really saving money on a low cost policy?” consider the value, when you need it, of all that your local insurance agent brings to the table. You can’t afford not to.
When do you need commercial auto insurance? Here’s the deal. Auto insurance policyholders using their vehicle(s) for business activities sometimes believe they can get comprehensive coverage for their business use at a lower cost through their personal auto insurance policy. There are a few important reasons why you need to consider getting a commercial auto policy:
Higher coverage limits that you may need for commercial use of your vehicle(s) are sometimes a problem in personal lines. Commercial Underwriting will readily accept limits as high as $1,000,000 and can even go to $2,000,000. Excess policies are available for even higher limits, and this can be important depending on the nature and value of your business.
Commercial Auto provides liability protection for other entities your customers may work for requiring Additional Insured coverage. As an example: Any contract with the local, state or federal government; general contractors and bid jobs most commonly require to be named as additional insured on the auto policy. This cannot be done on a personal policy.
Hired Auto – You may have a “Hired Auto” exposure under a personal lines policy when a vehicle is not a “private passenger or light truck” type. Here’s the problem: Suppose a contractor hires a dump truck to remove debris from a job site. The liability would not be covered under a personal policy, but would be covered under a Commercial policy if written with Hired Auto coverage. This coverage could also be offered on your business liability policy as an additional endorsement. Either way, it’s essential.
Employers Non-Owned Liability Coverage or ENOC – If you’re sued by someone who was involved in an accident with one of your business employees while the employee was driving his or her personal vehicle on company business (making a delivery, going to the bank, getting lunch, etc) you’re not covered under a personal lines policy. You can only be protected through a commercial auto policy that has ENOC added to it
Loading and Unloading – This is important. Loading or unloading can be covered by both personal lines & commercial policies, but coverage under the commercial policy is much broader. With a personal lines policy, once you unload the items and move away from the vehicle, coverage stops. With a commercial auto policy, coverage stays with you until you deliver the items (tools, stock, equipment, etc.). Coverage remains with you even if you load the items onto a non-motorized tool (like a dolly or hand-trucks) until you deliver them. This is also true for loading. Personal lines offers coverage while next to the vehicle loading items into the covered auto. Commercial policies provide coverage from the time you pick up, or start carrying/moving items, until those items are safely in your covered auto.
Some insurance companies want to write a separate personal auto insurance policy for each vehicle when clients have more than one to insure. This action can cause problems or confusion in coverage and billing. With a Commercial Auto Policy you’ll have one policy for all your vehicles and one 12 month billing cycle. It just makes it easier to manage your costs.
It's time to make the world a safer place to drive.
When surveys indicate that a majority of teen drivers look to their parents as the best influence in getting them to drive more carefully, it’s time to step up, take notice, and take action. The “Safe Teen and Novice Driver Uniform Protection Act of 2009”, also known as the STANDUP Act, was introduced in the U.S. House of Representatives in April 2009 as H.R. 1875. The bill is designed to encourage all states to enact Graduated Driver Licensing (GDL) laws that would require new drivers have more on-the-road driving experience to help reduce the alarming trend of teen driving accidents and deaths.
Many states currently have GDL laws on the books, and part of the intent of the STANDUP Act is to provide compliance incentives for states to receive full distribution of federal-aid highway funds if they enact and enforce comprehensive GDL legislation.
Statistics show that teenage drivers between 16 and 20 years of age have a fatality rate that is four times the rate for drivers between 25 and 70 years of age. According to the Insurance Institute for Highway Safety, the chance of a crash by a 16- or 17-year-old driver is doubled if there are two peers in the vehicle and quadrupled with three or more peers in the vehicle. Adding to the danger is the increasing risk of accidents due to night driving and distractions such as talking to passengers and use of mobile devices for texting.
The insurance professionals at Allstate are taking a stand and want to help teens become safer drivers. Allstate supports the STANDUP Act and has created the Parent-Teen Driving Contract (.pdf) so that parents and teens can start the conversation about safe driving and agree to specific behaviors, rules and consequences. From safe driving practices to avoiding texting, drinking and other distracting behavior, the Parent-Teen Driving Contract is a step in the right direction. Establishing ground rules and consequences is a good way for parents to talk to their teens about the responsibilities that go with the driving privilege and help them succeed.
It's that time - your child is about to leave for college. Have you given any thought to insurance coverage?
As a parent, you have Homeowner’s insurance, but those policies generally cover children at college only if they’re living in on-campus housing. This means that even if your child is considered a dependent under your policy, his or her personal property is probably not going to be covered if he/she plans to live off campus.
Any damage or loss to your child’s computer, cell phone, other mobile device, camera, or other costly property will be his or her responsibility if there’s no coverage. To make sure he/she is covered, renters insurance should be considered.
Here are a few reasons why:
Renters Insurance is designed to cover personal property against any loss or damage. The landlord’s insurance will not cover your child’s personal property in the event something is damaged or stolen as a result of a theft, fire or other occurrence.
Renters Insurance covers you in case someone is injured while on your off-campus property (i.e. a rented house, apartment or condo). Renters insurance will not only cover those incidents that result in someone being injured at your place, but will also cover legal fees if you’re sued.
Renters Insurance policies typically cost between $15 and $30 a month, depending on the size of the rental, the location and the value of your personal possessions.
Now that your child’s personal property is taken care of, you should also think about car insurance. If your child plans to have one of your cars at school, you should check with your insurance agent to make sure there is the appropriate coverage on that car while it is in a different location. If your child owns the car, however, make sure to get the proper insurance within the state of residence.
Condo owners, ask yourself this question: If there's a fire, water damage or other devastating occurrence that results in my condo unit being declared a total loss, what am I going to have to pay for if my unit has to be completely rebuilt?
Here’s an important distinction you need to know. Condo associations have master insurance policies that typically cover only the permanent structures and common areas of your unit and nothing inside. Condo owners are responsible for their own personal property, which includes clothing, furnishings, as well as any appliances that can be unplugged and moved. You may also be responsible for replacing fixtures, flooring and plumbing.
How do you know what’s covered? Smart condo owners need to find out exactly what are the gaps in the master policy - where does that policy leave off and what’s your responsibility to replace.
Bottom-line, you need a personal condo insurance policy with specific options that will provide complete coverage for all of your personal property. That’s why it is important to understand what’s covered by the master association policy and know what you’re responsible for should your unit be a total loss and need to be rebuilt.
A personal condo insurance policy will be tailored to have the right options, which could include:
Personal Property Protection - Covers the loss or damage to your possessions
Real Property Protection - Covers things you own such as fixtures and other installations that are not typically considered "personal property"
Family Liability Protection - Provides legal representation and insurance against judgments
Guest Medical Protection - Covers medical costs for visitors injured at your home
Additional Living Expenses - Provides reimbursement for costs of temporary housing during reconstruction
To avoid confusion and the potential of serious financial loss, find out how you're covered under your condo association's master policy and talk to your insurance agency about how a condo policy with options specific to your situation can provide you with the complete protection you need.
If you’re a boat owner, there’s a chance you may have overlooked obtaining the right boat or watercraft insurance policy. Perhaps you’ve been under the impression that your homeowner’s policy covered your boat as well. The truth is that some homeowner’s policies may provide limited boat liability insurance coverage, with the determining factor being usually the power of the boat motor. It’s best to check your policy carefully and discuss your specific situation with your insurance agent.
Now’s a good time to make sure you have appropriate coverage. And if you do have a boat or watercraft policy what exactly is being covered? There are different coverage options for boat owners to insure that their boat and its passengers are protected. These options include physical property damage, watercraft liability, medical payments, fuel/oil liability, uninsured watercraft, boat equipment, and emergency services.
The environmental disaster of the oil spill in the Gulf of Mexico comes to mind, and boat owners have shown concern about coverage for unforeseen circumstances. An oil spill from your boat could have a serious financial impact if you are personally responsible to pay for the clean-up. This type of occurrence is usually covered by the watercraft liability coverage on the boat owner policy. However, some policies do have separate limits that are specific to fuel oil liability.
Keep in mind that a personal umbrella liability policy, which provides an extra cushion beyond normal liability limits, does not extend to a fuel spill liability. Therefore, it’s very important to carry $500K or $1MM in fuel spill coverage on the boat policy to make sure you’re protected.
Boat owners may also neglect to take other operators into account when purchasing their policy. If you borrow someone else’s boat, make sure your policy covers your liability on that boat, including fuel spills, which would be outlined under non-owned boat liability coverage. Although some boat policies will cover any “permissive operators” who drive the boat with permission, some boat insurance policies may provide coverage only to those operators listed on the policy. In addition, if someone operates your boat and causes a serious accident, they may be covered as a “permissive driver,” but be careful because your policy may only cover those individuals specifically listed on your boat policy as operators. And this is a case where a personal umbrella liability policy could come in handy. While this policy would cover your liability exposure in operating someone else’s boat, there are underlying limits that will likely leave you with a gap of $100,000 or more.
But here’s the good news! There are a number of discounts that could help you save on boat insurance. These discounts might include policies on a new boat and diesel engines. You might also be eligible for a multi-policy discount on your boat and auto insurance. And remember that you may be able to earn discounts for successfully completing certain boat education courses.
Talk to your local insurance agent for more information. Safe boating!
Everyone knows fireworks can be fun, especially this time of year, but a lot of people don’t take into account the negative repercussions those pyrotechnic devices can bring.
The first problem: They're illegal in New Jersey as well as in many other states. If you’re caught selling, owning or using fireworks within a state in which they’re illegal, you’ll undergo certain penalties determined by that state.
Besides the legal aspects, you run the risk of someone getting hurt or property being damaged as a result of using fireworks. A few people setting off fireworks in your backyard for summer fun could result in damage to your home, damage to your neighbor’s home or someone in the vicinity being seriously injured.
If such instances occur, you could be liable for repairs, medical expenses or even attorney fees to defend yourself in a personal injury lawsuit case. That, in effect, means that there are a number of things at stake including:
Your savings
Your investments
Equity in your home
Equity in your business
A portion of your future earnings
The Bottom line: Most illegal activities are not covered by insurance and can cost you a lot of money if something goes wrong.
For fireworks lovers living in states in which they’re illegal, you cannot get insurance coverage for this unless you have a pyrotechnic operator’s license. But even with that license, coverage is likely will be very expensive.
When you rent a car, are you quick to take the insurance coverage that the rental car company offers you? Maybe you quickly skip it altogether. But perhaps you should purchase a collision damage waiver (CDW) or loss damage waiver (LDW). What about personal liability insurance? Are you already covered? Without looking at your existing coverage and insurance options, you may end up purchasing duplicate coverage or driving your rental car underinsured.
Most car insurance companies will cover private passenger rental cars in the United States for both liability and damage to the rental car. Contact your insurance agent to find out what coverage you have on your auto insurance policy and how much coverage you hold on your vehicle. If you have enough liability coverage to protect other passengers and their vehicles, you will not need your rental company’s personal liability insurance. Likewise, if you have sufficient collision and comprehensive coverage, you can pass on purchasing a CDW or LDW to protect your rental car from damage. By taking note of the coverage you have under your existing policy, you are saving yourself a few bucks on rental car insurance.
Know What Coverage You Have
You might not realize that your credit card company may offer rental car coverage. At times, you can receive free benefits if the cost of the rental car is charged on your credit card. When these benefits are not free, your credit card company may offer you a cheaper deal for renting a car. However, many people mistakenly believe that their credit card company will provide full coverage for rental cars. There are a number of factors to take into account. Your credit card company may not cover SUVs, luxury cars, pickups, vans, or other vehicles. Long-term rentals for over two weeks and travel outside of the designated geographic area are not likely to be covered as well. Some policies do not offer personal liability coverage for bodily injury or death claims. Other credit card policies only cover damage to your rental, but not to other cars.
When you know how much coverage you have through your auto insurance policy and your credit card issuer, make sure you inquire about limitations and situations that may affect your coverage. For example, according to the Insurance Information Institute, if you are at fault for causing an accident by speeding or driving under the influence, your insurance coverage may be void. Ask questions to understand what is covered and what is not.
There are several potential traps that you should be aware of (including a few reminders to keep in mind when renting a car):
If you’re renting a commercial vehicle like a cargo van or a U-Haul box truck, make sure you check with your insurer because it is likely that your personal auto insurance policy will not provide coverage. The best rule of thumb is to check the license plates – if they’re commercial, you probably need to buy the rental car insurance, but please call your insurance agent to confirm.
If your vehicles are all company-owned, you need to check with your insurer as you may not have coverage on rental cars.
If you are traveling outside of the United States (to Canada, Mexico, etc.), be sure to check with your insurance agency as you may not have coverage.
If you have your own collision coverage and decline the loss damage waiver (LDW), you will still have to pay a deductible if the rental car is damaged, vandalized, or stolen.
Again, if you do not have collision or comprehensive coverage on your auto policy, damage to the rental car will not be covered. You should consider purchasing a CDW from the rental car company. If not purchased, you could be held responsible for damage, vandalism, or the theft of your rental car
It is likely that your personal property may be covered under your homeowners or renters policy if it is stolen from your rental car.
Before renting a car, do your research and familiarize yourself with the different insurance options. Review your auto insurance policy and your credit card company’s benefit guide. If you don’t have any other insurance, purchasing coverage from the car rental company is strongly suggested. When buying insurance coverage, find out exactly what is covered and included to help avoid spending on unnecessary coverage.
There’s always the risk that someone will get injured at an event, specifically at a non-business-related event such as a party or any type of celebration. Whether it’s a wedding, bar mitzvah, or a birthday party, the chance that someone could get hurt or injured always lingers about, which could unfortunately lead to a lawsuit. And in these cases, whoever is hosting the event could be held liable.
Event Liability Insurance
Event liability insurance protects you from possible exposure of injury or property damage taking place due to any negligence on your part during an event you’ve held.
Many people aren’t aware that their home insurance policies will cover them for lawsuits related to accidents that happen away from their home. The liability coverage that is part of your home insurance helps protect you against the potential increased financial risk that could arise from injury or property damage that you or members of your household may cause to other people either on or away from your property.
For example, if you rent out a banquet hall for your son’s communion or your mother’s 80th birthday party, under your existing homeowner’s insurance, you could have certain coverage in the event that you get sued for something that happens at the party.
However, many catering halls, country clubs or other venues will have a contractual requirement that insists you pay for their possible legal defense and any settlement or damage costs in case a lawsuit is brought about as a result of something happening at your event. Most, if not all homeowner policies specifically exclude such contractual obligations.
Solution: Take out a Special Event policy with the venue as an “additional insured. Make sure that your liability coverage is significant. It is usually recommended that a liability limit of $1 Million be purchased. A Special Event policy provides broad protection for situations in which your special event must defend itself against possible lawsuits or pay damages for personal injury or property damage to any third party. This kind of policy also gives contractual liability protection to the venue or event sponsors by adding them to the policy as an “additional insured.”
Personal Umbrella Insurance
For many clients, a Personal Umbrella Liability Policy is also recommended to extend protection to higher amounts and additional accidents not covered under a Special Event policy. Personal Umbrella policies, however, will not cover contractual obligations or offer any sort of coverage to cover the legal defense of the event facility in such cases like those mentioned above.
All types of accidents happen every day, all over the world. When these accidents happen, a lawsuit could arise. Your local insurance agent can help you determine the amount of overall liability coverage that is needed to protect your financial well-being in possible unforeseen events.
New Jersey drivers under the age of 21 with probationary licenses and certain restrictions will be required to have a red reflective decal on their license plates to identify their status. The first law of its kind in the country, Kyleigh’s Law, is named after 16-year-old Kyleigh D’Alessio who was a passenger killed in a 2006 NJ car accident. The law goes into effect May 1st.
Sponsors of the legislation maintain that the law will encourage young drivers to obey the laws and will allow the police to identify drivers with probationary licenses. These licenses have strict rules. Drivers under the age of 21 can be pulled over for driving between the hours of 11 PM and 5 AM or for carrying too many passengers, both of which are violations of the Graduated Driver’s License (GDL) provisions. There is a fine of $100 if a red decal is not on their license plates.
Decals cost $4 for a pair and must be purchased at motor vehicle agencies. The decals need to be affixed to the upper left corner of both license plates and can be removed if older drivers are operating the vehicle. Decals can also be transferred to another car.
Coming under intense challenge on its way to being passed, Kyleigh’s Law has been criticized as unfairly profiling young drivers. Opponents are also concerned that the decals will be a clear sign to those who might prey on young female drivers in particular.
Those who are against the law also consider it age discrimination and lobbied for its defeat. However, Morristown Superior Court Judge Robert Brennan dismissed an early lawsuit in March, saying, "Operating a motor vehicle is not a right, it’s a privilege subject to state regulations. Kyleigh’s Law does not violate the constitutions of the United States or New Jersey." Until public pressure or other factors influence lawmakers to repeal it, it is the law and young drivers will have to comply.
Driving is a privilege and ultimately driving responsibly rests on the shoulders of the person behind the wheel, whatever their age. Drivers need to understand and obey the laws and realize that they also have a responsibility to their passengers and other drivers on the roads shared by all.
The intent of Kyleigh’s Law is to lower teen driving accidents and save lives. Safe drivers need to have common sense, good driving skills and respect for others on the road. Ultimately, individual actions behind the wheel are the key factors in accidents that impact our lives and influence auto insurance rates. Some laws may help deter unsafe driving, but the real challenge is for young drivers to accept personal responsibility and respect the privileges that come with having a driver’s license. It’s too soon to tell right now how public sentiment will evolve on the red decal law.
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