While it is true that a higher deductible will save you money on your premium, it is not always wise to carry a high deductible. It is important to balance the long term savings with the increased out of pocket expenditure you will have if a claim occurs. If you need to fix your car or home, or have a large medical expense, do you have the resources to pay the deductible you have chosen? Choose the highest deductible you can afford.
It is important to remember that insurance is designed to spread the risk among a large pool of people. If each person was charged based only on their driving, claims, or medical history, many individuals and families could not afford insurance. As a society, we all work together to ensure that the overall cost of insurance is as affordable as possible for all of us individually and as a whole. If the overall claims cost rises, so will the overall insurance cost. Within auto insurance, those drivers that contribute to raising the cost of claims by having violations and accidents contribute a greater premium than those that do not. It is important to remember that rising medical costs, home prices, car prices, auto repairs, and lawyer involvement in claims all contribute to raising the cost of your insurance as insurance pays these expenses when a loss happens.
No, all companies are not the same. It is important to research the insurance agency and company that you choose to do business with. Ask your friends and family for referrals, look up company information on the internet or with your State Insurance Department, and ask questions when you talk to an agent. How does the company handle their claims? Do their billing plans fit your budget? Does the company carry a strong rating from A.M. Best ? Know how long the agent and agency has been in business, if they are members of any professional associations, and do they represent a variety of companies or just one?
Though advertised as the low cost alternative, purchasing insurance by the phone is not necessarily a money saving proposition. Often we find that the savings proclaimed is more a product of advertising than one of fact. It is important to consider that without the assistance of an agent, you are left to make all the decisions yourself. If you have a problem, who works for you? If you have a claim, who would you rather rely on - a stranger on the phone or a real live person paid by you, to represent you? How do you replace the experience and expertise that an agent brings you and your family?
As a rule of thumb, when a vehicle approaches seven years in age or a value of $3,000 it is a good time to consider carrying only the liability coverage's. It is important to consider your specific situation as the actual age and value of the vehicle can differ from one individual to another. The key is to make sure that if a loss occurs, you have the financial resources to replace or repair the vehicle damaged.
Once it is determined that a vehicle is a total loss, your adjuster will verify the market value of your car in several ways. First they generally consult the NADA to determine a value for your market. Next they often will consult with a national valuation service that independently values your car. In cases where the appraisals vary, a survey of local dealers will help determine an appropriate value. Your adjuster works diligently to make sure you receive a fair payment.
One of the more significant factors affecting your insurance rates is your driving history. Studies have shown that a driver who has a violation or accident is much more likely to have a claim than a driver with a clear driving record. Because of this, drivers with accidents or violations pay a higher premium. Even when you have a good driving record you may still have an increase in your cost of insurance. Why? Because you are not just paying for your insurance experience, you are helping to pay for every other driver. While this does not always seem fair, it reflects the basic principle of insurance: spreading risk and sharing losses. This means you help pay for the losses of other drivers, just as they would help pay your losses if you should have an accident.
This is a good question whose answer has evolved over the years. Your automobile policy will usually extend coverage to a rental car just as though it was your vehicle. If you have comprehensive or collision coverage on your policy, this coverage will extend to the rental vehicle in the same manner - deductibles included. This only applies if you are actually the one driving the rental vehicle.
It is important to review the rental contract to be sure you understand what you are responsible for when renting the car. If they apply any fines or extra charges for being in an accident, your insurance often will not provide coverage for these expenses. A second avenue to pursue is your credit card, many credit card companies offer special coverage's for renting a car when it is charged to your credit card.
When a tree falls, it is the insurance on the property damaged that is used. For example, if your neighbors tree fell on your house, it would be your home insurance that would pay for your damages. As the tree can not be held accountable for its actions, there is no negligence. If the owner of the tree knowingly knew the tree was rotted and did nothing, then there might possibly be an opportunity to purse payment by his insurance for your damages.
The policy requires the bank financing your auto or home to be listed on any claims check, as they also are an owner of the property. This is done to protect the financial interest they have in your property. About the only exception to this is under the auto policy, as the insurance company will generally be willing to make the check to the body shop if repairs have been completed.
Yes, your home policy will provide coverage for many of the extra expenses you incur while your home is being repaired or replaced. This includes reimbursement for motel rooms, meals, and other expenses authorized by your insurance company. This is subject to the conditions and limits listed in your policy.
Definitely, without this option your loss will be figured on an actual cash value basis. This means that if you have a television set that is five years old, your payment will reflect the five years of use. While this may be ok for a small loss, it will put you at a serious disadvantage if you have a large loss. By having replacement cost on your home policy, you will receive a payment that will pay you the full amount to repair or replace the damaged items. If an item is not repairable, you will be paid the full cost once it is replaced. This is a huge benefit for a large value loss. Certain items such as collectibles may be excluded from replacement coverage, please refer to your agent for any coverage restrictions.
It is important to refer to your agent for the specific coverage under your home policy. As a rule of thumb, if you have the special form policy (HO-03), coverage often applies if water enters the home from an outside, above ground covered loss. For example, if water comes in through a damaged roof, a broken window, or similar event coverage generally applies. If on the other hand, water enters the home through the foundation, or from below the ground, coverage generally does not apply. For example, no coverage generally applies for damage due to flood or flood-like conditions, water seepage through the foundation, or water backup through the sewer or drain. Flood Insurance is available as a separate policy, and coverage for water backup through the sewers or drains can often be added as an endorsement to your policy. Your agent can help to determine for certain how coverage applies under your particular policy.
It is important to remember that in most situations, replacement cost is only paid upon the replacement or repair of the covered item. The goal of insurance is put you back to a comparable place to where you were prior to the loss. If you decide not to replace a damaged item, then your actual loss is the lost value of the item. If you replace the item, then your expense is for the cost of replacement and your insurance will reimburse you for this extra expense. For example, let us say that you have 25 year shingles, and they are considered a total loss after 10 years. Your insurance would initially pay you for the 15 years of life you lost. You now have the option of keeping that payment or replacing the shingles. If you replace the shingles, then your insurance company will issue a second check so that you are reimbursed for the full cost of replacing the damaged shingles. Please refer to your specific policy to determine if your coverage includes replacement cost.
Depends on the type of coverage and the cost of your group coverage. In many instances, we can lower your dependents cost of insurance while providing coverage equal or better than that provided by your employer. The advantage of group health policies is that the underwriting is generally more lenient while individual policies will look at your medical history intently. If your dependents are in good health, the individual policy will reward this and will likely be less expensive while providing excellent coverage.
The best deductible is usually the highest that you can reasonably absorb. The savings of a higher deductible plan can often be greater than the difference in the deductibles themselves. In these cases you come out ahead no matter if you meet your deductible or not. For example, a $250 deductible might cost $90 monthly, but the same coverage with a $500 deductible is only $60 monthly. You would save $360 a year by choosing the higher deductible. Even if you then had medical bills that exceeded the $500 deductible, you would still come out $110 ahead as you are only absorbing an additional $250 in deductible. A win-win situation for you.
This is a question that has no definite answer. Each individual and family requires an amount of insurance based on their needs. We look at such things as amount of debt, assets available, number and age of children, income of spouses, and other factors for determination. As a rule of thumb, we generally suggest at least 6-8 times your annual salary.
Each individual has a unique need. The advantage of term insurance is that it generally allows you to purchase life insurance at the lowest possible cost. You can pay less for more coverage. A term policy though can get very expensive in your senior years and will always require a premium payment for coverage to continue. A whole life type policy provides life insurance protection while also containing a savings fund. The intent is to try to provide a "forced" savings plan that will grow into a good sum over the length of the policy. These policies are more expensive than term due to this feature, but they generally offer a better cost in your senior years as the cost of insurance is spread over the length of the policy. You pay more than your actual cost of insurance in your younger years and less than your actual cost in your older years.
When we talk about long-term-care insurance, talk often centers around the cost of nursing home care. This obscures one of the primary reasons of the importance of LTC insurance, the ability to stay out of a nursing home. Most people prefer to stay in their home as long as possible, as much as 70% of all current long-term care is in the form of home care. Less than 2% of the average LTC expense is covered by Medicare. Long Term Care insurance gives you the ability to have a decision in the care you receive, where you receive the care, and who provides your care. It also protects the financial security you have spent a lifetime to build.
The cost of waiting... A 50-year-old can purchase nursing facility and home/community care policy with a $100 per day lifetime benefit with compound COLA and a 90 day elimination period for under $1,300 a year. That is less than the cost of a two week stay in a nursing home. But, at age 75 the annual premium is almost $4,000 for the same policy. LTC coverage is an extremely important concern for many of us, call our office today for more information.
For the most part, the answer is no. Very little medical expense that is considered long term care is covered under your existing health plan or Medicare supplement. Even Medicaid is becoming more stringent in who qualifies and what is paid. Signing over your assets to your children and using Medicaid is no longer the option it once was.
Long term care is going to be one of the greatest challenges that we will face as our population continues to grow older and the demand for this care increases. Start your research now, explore your options, and determine a plan to protect you and your family from this challenge to your well-being and financial security.
