Archive for the ‘car’ Tag

Best ways to prevent a big increase in Auto Insurance rates   Leave a comment

What is the one thing that consumers do that causes auto insurance prices to go WAY up? You may be surprised to know that it is NOT necessarily a ticket or violation but rather a lapse in coverage. That’s right if you allow your policy to expire and have a gap between policies or you simple fail to pay your insurance bill this can cause an increase as high as 50%. Why? It is the law and you are required to have coverage in order to maintain a license tag in Florida. Just as the State considers it unacceptable and irresponsible to drive without insurance so do insurance companies.

So what’s the best way to prevent a lapse? That is simple, most companies offer an EFT payment option which actually often gives you a discount as well as a much lower down payment in exchange for electronically accepting payment each month automatically from your account.

Another tip for BIG savings, Pay your policy in full instead of making monthly payments. This is not always an option when cash flow is limited and that is why payments plans exist but it frequently can be 20% savings to pay in full for 6 month or a year. The Department of Insurance allows companies to submit rate changes twice a year in most cases so if you get a 12 month policy instead of 6 months you may push that rate increase off for another 6 months.

If you think your insurance rates are too high give us a call or check out our website to request an instant quote online. Have your policy and vehicle information handy for the most accurate quote.get-quote-button

”Our blogs are for general education and information only and may not represent your unique needs. Coverage will vary. Please contact your agent to verify your specific policy terms and conditions.”

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Posted February 5, 2015 by leecountyinsurance in Automobile (Personal)

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UM: Benefits Beyond Medical Bills   Leave a comment

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At the break in a class I overheard a student say, “My husband is in the military, so we don’t need uninsured motorist (UM) coverage.” The same comment could be said by someone who had PIP coverage, auto medical payments coverage, health insurance, disability insurance, Medicare, or even workers’ compensation coverage.

Clearly, the benefits provided by the military, PIP, auto medical payments, disability insurance, and workers’ compensation can be substantial. Even as good as those benefits are, however, there are expenses not covered under those policies that would be covered by UM. Remember, UM pays what the insured is legally entitled to recover from the at-fault party. Often, monetary damages awarded by a court include things that none of the earlier referenced policies (or military benefits) will cover.

Let’s take a look at this issue by way of example and see what the benefits of UM coverage are, beyond just reimbursement for medical bills.

Suppose Bill is involved in a hit-and-run auto accident and is seriously hurt by the at-fault party. He is protected by a personal auto policy (PAP) with $50,000 of PIP (he increased the $10,000 basic limit to this higher amount after seeing the small additional premium charge) and $5,000 of auto medical payments coverage. His auto policy includes $250,000 of UM coverage and his personal umbrella includes $1 million of UM. Bill has no disability income policy. Additionally, he is covered by a health insurance policy provided by his employer.

As a result of the accident the following expenses and losses were incurred by Bill:

  • $75,000 for prior medical bills.
  • $175,000 for future medical bills.
  • $20,000 for prior lost wages.
  • $300,000 for future lost wages.
  • $1,000 for a wheelchair since Bill is unable to walk now.
  • $10,000 for future wheelchairs.
  • $30,000 for a special van to transport Bill and his wheel chair.
  • $90,000 for future vans.
  • $20,000 to retrofit the house to accommodate the wheel chair.
  • $25,000 for a yard service for Bill’s remaining life expectancy, since he is unable to cut the yard now.
  • $100,000 for future pain and suffering.
  • $100,000 for the loss of “family comfort” with his wife.
  • $100,000 for the loss of the ability to coach youth softball.
  • $200,000 for future loss of the enjoyment of life.

Looking at the insurance that Bill has (disregarding the UM for now) what is seen is that the PIP and auto medical payments coverage are quickly exhausted. Bill can fall back on his health insurance, but keep in mind that he will likely incur a deductible plus a co-pay each year. Once Bill’s PIP is exhausted, his wage-loss protection is gone and with no disability income policy he is “up the creek.”

Suppose, however, that the accident happened to be work related and thus covered by worker’s compensation. In such case, Bill’s medical expenses would be fully covered, subject to the provisions of the workers’ compensation law. Bill’s lost wages would be paid, typically (in Florida) at 66.67 percent of his wages. The time period for which workers’ compensation will respond for lost wages varies from two years to a lifetime, depending on the type of disability. Remember, too, wage loss benefits are subject to a maximum per week, which in Florida is around $850 per week. The wage loss benefits paid to Bill by workers’ compensation would not fully replace his salary.

With or without workers’ compensation coverage, consider the monies awarded to Bill for which he has no coverage, except under UM. The excess medical expenses, lost wages, wheelchair, van, house modifications, yard service, pain and suffering, loss of family comfort, and all the other damages listed above would be covered by UM.

Of course UM isn’t always an inexpensive coverage, but when the cost is compared to what most folks spend on cable TV, cellular service, a country club membership, or eating out for dinner twice a month, the cost for UM is probably the lowest listed.

Even if someone is in the military, is retired, and/or has “a lot of other insurance,” the protection provided by uninsured motorist coverage is very valuable. Don’t be so quick to reject this valuable coverage.

” Our blogs are for general education and information only and may not represent your unique needs. Coverage will vary. Please contact your agent to verify your specific policy terms and conditions.”

Courtesy of FAIA, Authored by David Thompson, CPCU, AAI, API 

Crash Statistics 2013   Leave a comment

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Annual Global Road Crash Statistics

  • Nearly 1.3 million people die in road crashes each year, on average 3,287 deaths a day.
  • An additional 20-50 million are injured or disabled.
  • More than half of all road traffic deaths occur among young adults ages 15-44.
  • Road traffic crashes rank as the 9th leading cause of death and account for 2.2% of all deaths globally.
  • Road crashes are the leading cause of death among young people ages 15-29, and the second leading cause of death worldwide among young people ages 5-14.
  • Each year nearly 400,000 people under 25 die on the world’s roads, on average over 1,000 a day.
  • Over 90% of all road fatalities occur in low and middle-income countries, which have less than half of the world’s vehicles.
  • Road crashes cost USD $518 billion globally, costing individual countries from 1-2% of their annual GDP.
  • Road crashes cost low and middle-income countries USD $65 billion annually, exceeding the total amount received in developmental assistance.
  • Unless action is taken, road traffic injuries are predicted to become the fifth leading cause of death by 2030.

 

Annual United States Road Crash Statistics

  • Over 37,000 people die in road crashes each year
  • An additional 2.35 million are injured or disabled
  • Over 1,600 children under 15 years of age die each year
  • Nearly 8,000 people are killed in crashes involving drivers ages 16-20
  • Road crashes cost the U.S. $230.6 billion per year, or an average of $820 per person
  • Road crashes are the single greatest annual cause of death of healthy U.S. citizens traveling abroad

” Our blogs are for general education and information only and may not represent your unique needs. Coverage will vary. Please contact your agent to verify your specific policy terms and conditions.”

Courtesy of ASIRT

Auto Insurance Coverage for Teen Drivers with Divorced Parents   Leave a comment

When a teenager receives her driver’s license, she often will be added to her parent’s auto insurance policy. But if her parents are divorced, teen car insurance could become a bit confusing.

A father teaching his teenage daughter how to drive.

 

Insurance companies and states have different requirements regarding coverage of additional drivers on an insurance policy, but here are some tips to review if you have a teenage driver with divorced parents:

If your teen has access to driving vehicles at both parents’ houses, then both parents might need to add him or her to their individual policies. Some companies may require that the parent with custody add the teenage driver to their policy. Divorced parents may want to contact their insurance companies to find out what is required in their situation.

Every state requires licensed drivers to have auto insurance coverage, which includes teen drivers, even those with a permit, when driving. If you have a teenager in your household who may be on your former spouse’s insurance, it may be a good idea to find out if your insurance would cover your teen while driving your car.

Safe driving techniques can help all family members save money on car insurance. Teaming up with your former spouse to encourage, educate and even monitor your teen might help to make him or her a better driver. Car crashes are the No. 1 cause of death for teenagers, according to the Centers for Disease Control and Prevention.

 

No matter which parent carries their teenager’s insurance, both can set rules for the use of the car. Here are some suggestions:

  • Prohibit cell use and texting when in the car.
  • Limit the number of passengers in the car when your teen is driving.
  • Establish a boundary of where your daughter can take the car.
  • Encourage your son to call you at any time for a ride if he feels he, or another driver, isn’t fit to drive—no matter what the situation is.
  • Require everyone—drivers and passengers—to wear seat belts.

Having a teenage driver in the family is always an exciting time for everyone. If you have a change in your family situation, contact your insurance agent to determine if any changes are needed for your policy.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

Courtesy of Allstate

You’re moving out of state — do you need new car insurance?   Leave a comment

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You’re moving out of state; it’s time to pack your bags, get your affairs in order and head off for new horizons. An additional consideration, one that sometimes isn’t top-of-mind, is car insurance. Specifically: do you need to get new car insurance when moving to a new state?

The answer is almost always “yes,” but with a major caveat.

When you move to a new state you usually have between 30-90 days to register your vehicle. Use those months to get your car insurance situation straightened out; do not do it before you move.

That is the major caveat: do not cancel your old car insurance policy before setting up your new one. Do not cancel your policy in one state and then move to another state before getting a new one. You should never drive — especially across state lines — without a car insurance policy. It is illegal, and potentially very costly if you get into an accident.

Indeed, your policy may change after you relocate even if you stay with the same provider. Your new state may have different laws and policies than your old one does, thereby adding or subtracting a few dollars from your monthly bill. You might also be commuting more (or less), which would also affect your premium. In your move you may have also acquired some new assets, including a new vehicle. Additionally, your car insurance provider might not be able to sell insurance in your new state — so it’s definitely best to check in.

When you register your vehicle in the new state must show proof of insurance. And the states must match; if you’ve moved to Florida, when you register your vehicle there you must have valid car insurance in Florida as well. Do not go to register your car without first getting your car insurance set after the move.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”

I had an accident but I didn’t get a ticket so the other guy is at fault, Right?   Leave a comment

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Florida is a “Comparative negligence” State

Florida uses a form of comparative negligence (or your percentage of fault compared to the other party’s). This allows you to seek compensation even if you’re deemed only partially at fault. Since Florida uses comparative negligence, you can seek damages in proportion to your degree of responsibility for the crash.

For example, if a speeding driver rear-ends you after you suddenly changed lanes, it may be determined that both of you bear a degree of fault. If the other driver is found to be 60 percent responsible and you’re held 40 percent responsible, you may seek up to 60 percent of the settlement from the other driver’s insurer.

What “At Fault” Means 

It should come as no surprise that “at fault” literally means the person that caused the accident, or the one whose fault it is. Basically a person that is considered the catalyst for the accident is most likely to be considered “at fault”. There are other classifications of accidents, such as “no fault” and “partial fault”. Often times it can be difficult to ascertain who is at fault, and liability will be assessed to both drivers. In most cases, the person considered at fault will be the one that has performed an illegal, reckless, careless or irresponsible action while driving their vehicle, thus causing other vehicles to react to their actions, resulting in an accident.

What are the Ramifications of “At Fault”? 

Drivers that are considered at fault will find their insurance rates will increase, especially if there has been considerable damage to other vehicles. In addition, some insurance providers will drop drivers if they have too many at fault accidents. Furthermore, negligent drivers may be forced to pay for medical expenses, adding even more cost to their insurance companies. This can be particularly devastating if several cars, and multiple people, are involved. Property damage can also be tacked on to this as well. Insurance rates are not the only ramification of being at fault for an auto accident. Florida will assign points for every incident on driver’s licenses if you get into too many accidents, which in turn can further raise insurance rates.

What to do after an accident.

Get information from all of the vehicles involved. Get the other drivers names, addresses, and telephone numbers. Record the makes and models of the other vehicles, their insurance company information, and their vehicle identification number. The more information that you can get the better but, the mentioned information is a must. Do not ever try to handle the accident without your insurance company. In other words, do not ever let another driver talk you into handling the situation amongst yourselves. Even if they admit guilt of the accident and tell you that they would rather not have insurance companies involved for fear of future insurance rates going up, don’t go for it. Even if the person seems like the nicest person in the world, don’t make this mistake. There have been many cases where this has happened, then a few days later the innocent driver who was not at fault is informed that the other driver is suing them. Suddenly that other driver does not believe that the accident was their fault anymore and reported the accident to their insurance company. This kind of situation will leave you in a bad situation so do not fall for something like this no matter what! 

You will then want to contact your insurance company right away and let them know what happened. Give them all the details of the accident and let them know that the accident was not your fault. If you can call them while the police are present it may be even better as the police may be able to give them information that you can’t.

“Our blogs are for general education and information only and may not represent your unique needs. Coverages will vary. Please contact your insurance agent to verify your specific policy terms and conditions.”