When my car gets hit, when does it get fixed?

One of the stickiest situations for an insurance agent is when their client gets into an accident and it's the other person's fault.  Why, you ask?  Because any report, of any kind, to your own insurance company becomes part of your driving history.  So you're at the mercy of the other party's insurance carrier, and that's where things can get ugly, or usually just slow.

I'll explain more after the jump.

Auto Insurance: Rental Reimbursement

A common option on most auto insurance policies is something called "rental reimbursement" or "extended transportation expense".  Basically they help pay for a rental car should you not be able to use your own car. Typically the coverage is for 30 days, and the policy will give you a per day allotment ($30 or $40).

However, that doesn't mean you always get up to 30 days to rent a car when you don't have access to your own.  If you car is totalled in an accident you may have as few as five days of rental coverage before you're on your own.

Think about it, you've just been in an accident that damaged your car so much that the insurance company has deemed it a total loss.  You reported the claim, waited for the adjuster to make his decision and then realized you needed to start car shopping.  The clock is running.

This probably differs from company to company, but just be aware that you probably don't have a lot of time to make a decision.

Ask your agent for more information on your specific policy because you might be surprised.

Dan

Going Hybrid is Going Green (in a weird way)

Back when hybrid cars first hit the market there was a certain type of person that was attracted. For the most part, they were environmentally friendly and aware, they were defensive drivers on the road and they actually got credits on their insurance policies because they were "safe" drivers compared to the rest of us.

Not any more.  I've been hearing this talked about for a couple of months, but hadn't seen it actually proven, other than some insurance company underwriters making jokes.  I just read an article from Insure.com that makes the case that, for insurance purposes, driving a hybrid car will cost you money.

If you don't drive a hybrid you can laugh and exclaim "I knew it!"  If you do drive a hybrid feel free to tell yourself that you're not one of the problems.

http://www.insure.com/car-insurance/hybrid-drivers-social-responsibility.html

Enjoy.

Auto Insurance After a DUI

Hopefully it's something that you'll never have to deal with...getting insurance after being convicted of Driving Under the Influence (DUI).  It's not impossible, but it will almost certainly cost more and will mean moving your insurance to another carrier.

In most cases, after your day in court, in order to drive at all you need to have an SR-22. That's the form name for a "statement of responsibility" or in other words a document from an insurance carrier to the government saying you've got coverage.  It's the form required when you've lost your regular driving rights and that can happen for more than just a drinking-related offense.

After a conviction, or sometimes just the ticket itself, you might be non-renewed from your current carrier.  You'll then need to find something else quickly.  We use Progressive Insurance. They are a very good company that, to my knowledge, will take all comers.  Yes, it will be more expensive, but that was a foregone conclusion.

It's also possible that nothing will happen and your carrier doesn't find out about the incident. That depends on the state and insurance company as some carriers will do periodic motor vehicle record checks on existing insureds and some don't.

Either way, the sooner you speak with your agent the better because this process does take some time.  If you have more detailed questions about your situation or if you have more information you'd like to share please post in the comments section.

Umbrella Insurance

I wanted to introduce the concept of an umbrella when it comes to insurance.  You may have heard of the term before, but not known what it meant or if it referred to the Travelers umbrella.

An umbrella is additional liability coverage that sits "over top" of your primary liability on your home or renters' and auto insurance. It usually comes in one-million dollar increments up to $5m. The point of an umbrella is to have more protection for current and future assets should there be a lawsuit against you.

Your primary auto and homeowners'/renters' policies have "Personal Liability" or primary liability limits anywhere from $100,000 to $1,000,000.  (We recommend nothing lower than $500k)  The umbrella would sit directly on top of that, effectively extending the amount of insurance available in case of a lawsuit.

The need for an umbrella typically rises as you have more assets to protect and greater ways to put them at risk (i.e. teenage drivers, boats, etc...), but it's always a good idea because the cost is not great compared to the protection given.  Lawsuits can lead to a judgement that will garnish future wages.  So even if you're just renting an apartment now and have one car, don't think for a second that's all you have to lose.  $200 now for a million dollar umbrella is worth it considering what you could lose down the road.

If you have questions please contact me for more information.

Buying a New Car

It's not that you should necessarily consider the insurance costs when purchasing a new car, because there are a lot of more important factors to consider, but it's certainly one part of it.  We're going to cover a couple of common scenarios in this post 1) What do you need to insure your first car...and 2) What needs to happen when you're upgrading to a new car.

When you're buying your first car (new or used) to get insurance you're going to need basic facts about the car and driver(s).  On the car; Year, Make, Model, VIN.  If you're leasing it or have a loan, you'll need the bank/finance company's name and address.  On the driver(s): Name, DOB, DL#, up to 5 years of Accident/Ticket history.  Then it's just a matter of picking the right insurance carrier, which we covered here.

If you're upgrading your car, you should notify your insurance carrier right away. New cars (new or used) are sometimes picked up automatically on an existing insurance policy if you buy comprehensive and collision, but that's not guranteed. Your proof of insurance from your old car will suffice to get you off the lot (provided you're not crossing state lines).  Eventually you should notify your agent to have the new car added because if you pass 30 days there may not be coverage in case of an accident or loss.  I usually recommend making the change right away when it's on your mind.

If you have any questions please contact me and I'll be happy to chat.

What is my insurance actually covering?

Insurance policies are long...and detailed...and incredibly dry.  Remember some of your textbooks from school? Like that.  Your insurance agent is the best person to talk to about what is covered - and more importantly what isn't.

Here's a pretty comprehensive look at what is covered under most insurance policies and where many of them fall short from Forbes magazine. In the article they speak with an underwriter from MetLife Auto & Home, which is one of the carriers we represent at Gallagher.

http://bit.ly/9kpT4B

As always, contact me if you have more questions.

Should you pay for rent-a-car insurance?

Here's are article from MSNBC about the basic do's and don'ts at the car rental counter.

http://bit.ly/9KwxN5

The most important point is to plan ahead.  Find out what you have in place before you leave, because when you've just gotten off the plane, waited 30min for your bags, and you're ears are still numb from the guy in the middle seat telling you about the "shower curtain sales" business, is not the time to be thinking about insurance.

Auto Insurance Basics

Now that you've got the new apartment, used futon, 46" plasma screen and renter's insurance, you're ready to take the next step in protecting yourself.

Auto insurance.

It's not rocket science, but there's a first time to learn everything and you can't rely on your parents to do your laundry and keep you on the auto policy forever.