Hidden Dangers of Cheap Auto Insurance

Everyone wants to keep their bills down! Sometimes, changing insurance companies or coverages is a good way to make that happen. But there can also be pitfalls! Here is a great article from Yahoo! about the dangers of cheap auto insurance:

Hidden Dangers of Cheap Auto Insurance


When it comes to car insurance, cheap isn't always better. Find out why...

By Chris Kyle

Are you looking to cut costs on your car insurance? Here's some advice: Proceed with caution. Cheap auto insurance could actually end up costing you more down the road.

"Nobody should shop for auto insurance by price alone," says Jeanne Salvatore, senior vice president of public affairs for the Insurance Information Institute (III), an organization dedicated to improving public understanding of the insurance industry.

"You want to get a great price that comes with great service," Salvatore says. "It's a balancing act."

To help you make an informed decision, we've outlined five potential pitfalls of cheap auto insurance. Keep reading to learn why the lowest insurance rates can end up costing you big-time in the long run...

# 1 - You're probably not getting the coverage you need

Okay, so after some digging, you found a cheap quote on a car insurance policy. But do you know what's covered in the policy - and more importantly, what's not?

In most states you need some liability insurance, which covers the damage you cause to others or to property in the event of an accident, to legally drive. So, make sure you know your state's minimum coverage requirement.
However, collision and comprehensive coverage - which covers your car in the event of an accident, theft, vandalism, fire, and weather-related disasters like floods - is not required by law in the United States, according to the National Association of Insurance Commissioners' (NAIC) website, which helps regulate insurance requirements.

Do you want protection from these types of accidents? If so, you can expect your rate to rise accordingly.

# 2 - Your low-priced deductible payment could lead to higher costs

One popular way to save on car insurance is to opt for a higher deductible, the amount you pay out-of-pocket before your insurance kicks in, according to "How Can I Save Money on Auto Insurance?" an article on the III's website.

This could help reduce your premium because you are agreeing to pay a set amount (perhaps the first $1,000) on any future claims.
The danger is that if you are unlucky enough to have several accidents, this strategy can quickly become an expensive one.

You should take a look at your finances and make a realistic assessment of what you can afford.

A $1,000 deductible may not make sense if you don't have that kind of money handy in case you need repairs. On the other hand, a higher deductible could make sense for low-risk drivers who rarely get behind the wheel.

The important thing here is to be honest about what kind of protection you need and can afford.

# 3 - Bad customer service is bad news, even if your policy is cheap

You know the old adage about how the customer is always right? We all know that's not true. However, it is reasonable to expect prompt and courteous responses to your questions and concerns.

"You want to find a company with a really good reputation for customer service," Salvatore says.

Salvatore urges consumers to ask friends and family members for recommendations, just like you would do if you wanted a doctor or dentist referral. Ask if they have filed a claim with their company and how it went.

You can also check with your local state insurance department to find out the number of consumer complaints received about a particular company in relation to the number of policies sold, according to the III website.

# 4 - Friends may not be covered on a cheap policy

Hey, you're a nice guy or gal. Sometimes you let a friend borrow your car. But is he or she covered?

"Perhaps," writes the Ohio Department of Insurance in a consumer guide on the Ohio state's website. "Some liability policies cover a licensed driver who drives with your permission, while other policies state specifically that no other person is covered when driving your car."

And in a related hypothetical situation, what if you borrow a friend's car?

Whether you live in Ohio - or elsewhere - you owe it to yourself to find out the answers to these questions now. Don't wait until after you or a friend get into an accident to find out that your cheap policy has some holes in it.

# 5 - You need to watch out for cheap insurance scams

If a cheap car insurance quote sounds too good to be true, it probably is. In fact, it may even be fake. Potential red flags can include dirt cheap rates as well as companies and agents who are difficult to reach.

In 2011, some Detroit-area drivers were scammed into buying low-cost, bogus auto insurance through a company called Ethos, according to Michigan's Department of Licensing and Regulatory Affairs website.

Fortunately, insurance companies and their agents must be licensed in the state that you live, so verification is usually only a quick phone call away to your local insurance department.

And while auto insurance scams can be uncommon, it's better to be safe than sorry.

Questions about your policy? Want to get a quote, or talk to an agent about the exact coverage that you need? Contact Tague Insurance at (760) 729-1143!

Personal Emergency Preparedness Plan

The fires in Colorado have a lot of us thinking about our own personal emergency plan. Check out the article below for tips and details!
Do you pay attention to the headlines after natural disasters or large accidents occur? More specifically, are you aware of what is typically reported in the aftermath? Typically there are reports of persons stumbling around, seeking aid and at a lost for what to do.

Often there is little an individual can do to control a situation. But it is always better to make what plans one may. That is the simple philosophy behind the personal emergency preparedness plan (PEP) aka Family Disaster Plan

PEPs give individuals and families a plan of action when a natural disaster (such as flooding, earthquake, serious windstorms, tornadoes, etc.) is eminent or should a severe accident (home fire, structural collapse, utility line or pipe breakage, etc.) occur.

Generally a PEP should have the following objectives:

• Identify safe areas during an emergency – what are safe areas of the home during storm or earthquake? – What safety rules should be followed in event of a fire or flood?

• Escaping from area that is endangering family members – identify escape routes from every room (at least two)

• Establishing means for all family members to re-unite – Determine a safe meeting place immediately outside the home, or a neighborhood location – make sure to have access to working radio to access emergency information

• Ascertaining everyone’s safety – Check everyone for possible injury – apply first aid or contact emergency personnel as appropriate. Check residence for any dangers created by the emergency event, such as leaking utility lines, structural dangers, fire, etc

• Establish means to contact other family members and loved ones – have access to working phones, post emergency nos., training children on how and when to make emergency calls – make contact list of family members and emergency contacts (work and/or school numbers and e-mails)

Families should also consider issues that support a PEP, such as maintaining proper insurance, having an adequate first aid kit available and acquiring first aid training. Being aware of an area’s emergency plans and procedures as well as information on nearest emergency facilities are also helpful.

The above suggestions are merely a guide to considerations of an actual plan. Please seek out competent sources (such as city, state, hospital and similar websites) for information on creating a detailed PEP for you and your loved ones.

If you'd like to discuss your emergency plan with your insurance agent, call Tague Insurance at (760) 729-1143!

COPYRIGHT: Insurance Publishing Plus, Inc. 2010

Steps Parents Can Take to Help Their Teens Be Safe!

The first years teenagers spend as drivers are very risky. In fact, teen drivers have the highest death rates of any age group, according to the U.S. Department of Transportation.

While getting a drivers license is an exciting rite-of-passage for teens, it can be enough to make a parent frantic. Here are some steps parents can take help their teens be safe:

Pick a safe car.

You and your teenager should choose a car that is easy to drive and would offer protection in the event of a crash. Avoid small cars and those with high performance images that might encourage speed and recklessness. Trucks and sport utility vehicles (SUVs) should also be avoided, since they are more prone to rollovers.

Understand your state's teenage driving laws.

Many states have specific restrictions on teenage driving, often referred to as Graduated Drivers License laws. You should understand your state's restrictions and the quality of those restrictions before your teenage begins driving:
http://www.ghsa.org/html/stateinfo/laws/license_laws.html
http://www.iihs.org/laws/graduatedlicenseintro.aspx

Have your teen take a certified driver's education course.

A teenager who has learned to drive through a recognized driver's education course may be viewed more favorably by insurers. In some states, teens must take a driver's education course if they want to get a license at age 16; otherwise, they have to wait until they are 18. The more driving practice they have, the more confident your teen will be behind the wheel, and the better able to react to challenging situations on the road.

Enroll your teen in additional safe driver programs.

There are many additional "safe driver" programs that can provide additional assistance for teenage drivers. Check in your community, with your child's school or with your insurance company to find such programs—if your teenager completes the program, you may be eligible for additional insurance discounts. In addition, some insurers now offer discounts for parents and teens who install tracking devices in the car. Parents can monitor and provide coaching on their children's driving with a small global positioning system (GPS) device fastened to the dashboard. The GPS is connected to a Web site that lets parents set limits on their children's driving. For example, if the car goes over a certain speed, or ventures too far from home or school, the parents will automatically receive a message.

Talk to your teen about the dangers of combining driving with alcohol, drugs, lack of sleep and distractions.

Teach your children about the dangers of drinking and driving, and other distractions. Accidents occur each year because a teen driver was driving while drinking, using a cellphone, text messaging, playing with the radio or CD controls, or talking to friends in the backseat. Also, teens should be careful not to create distractions and to exhibit safe behavior when they are passengers in their friends' cars.

Be a good role model.

New drivers learn by example, so if you drive recklessly, your teenage driver may imitate you. Always wear your seatbelt and never drink and drive.

Have more questions about keeping your teen safe while driving? Or, if you'd like a quote on various vehicles for your new driver, call Tague Insurance at (760) 729-1143 for help!

Taken from the Travelers Insurance website: www.Travelers.com

Snowmobile Safety

Ok, so we live in an area where the sun shines and beach go-ers are everywhere, even in the winter time. But the nice place about our area is that the snow is just a short car trip away! If you're planning on taking a trip to the snow, enjoy a snowmobile tour!! Here's a quick article about snowmobile safety:

Bounding over trails through woods, over fields and across frozen ponds or lakes with cold blasts of air whipping around are all part of the fun that thousands and thousands of people enjoy during winter in their snowmobiles. Snowmobiling’s fun should not mask the fact that it still involves the use of fast, heavy vehicles that, in collisions, can cause severe injuries and damage to property. Some models of snowmobiles and all-terrain vehicles operate at speeds that rival automobiles. Unlike autos, they are open vehicles, lacking the structural protection of even the smallest auto; therefore the danger to snowmobile users is far higher.

The danger of being injured while operating snowmobiles is compounded by some important factors. Snowmobiles are operated over rough terrain with obstacles that are often hidden by snow. They are operated in areas where the drivers are not familiar with paths or trails. Novices and older operators with poorer reflexes are attracted to recreational snowmobiling and these vehicles are often used very late at night, in remote areas. Another consideration regarding use of snowmobiles is that operators also combine driving with drinking and alcohol intensifies the other dangers.

Naturally there are practices that can help lower the chances of being in a serious accident. Snowmobile operators should:

Avoid solo snowmobiling - having another person around in case of an accident is probably the greatest safety practice.

Properly maintain the snowmobile to insure safer operation

Dress in appropriate safety gear and clothing, including water-repellant apparel

Operate snowmobile at speeds that are appropriate for conditions and terrain

Do not drink alcohol while operating a snowmobile

Use marked trails and don’t stray off of them

Carry a first aid kit, as well as other emergency equipment, especially tools, flashlights, compass, matches, etc.

Avoid crossing bodies of water as breaking through ice is a major peril (drowning is a chief source of snowmobile accident fatalities).

If you've got your own snowmobile, make sure it's insured! We can provide you with the best snowmobile policy available. And our companies don't require that you have a homeowners or renters policy. Contact your agent at Tague Insurance to get a quote!

COPYRIGHT: Insurance Publishing Plus, Inc. 2010

Be a Common Sense Host!!

Holidays and special events often include celebrations that bring together families and friends in private homes across the country. Food, fun, talk and spirits flow generously and, unfortunately, so do injuries and accidents. It’s not news to hear that increased drinking leads to increases in personal tragedies, but it’s important to get reminders that individuals must be responsible for their actions.

Hosts are very important with regard to any consequences of partying. Hosts are given the credit for the enjoyment that their guests experience at a party. On the dark side, party-givers are also asked to bear partial or full responsibility for guests who cause damage or injury on the way home from a gathering. In other words, they may be sued for contributing to losses caused by alcohol-impaired guests.

Although hosts are often found legally culpable for accidents; the brunt of responsibility has to be faced by the individuals who directly cause a loss. There would have to be strong evidence to support a host being held financially responsible, since any involvement is indirect. For example, Jane provides drinks to Barrie, who then plows into the side of Chris’ car and garage.

While a homeowners policy may offer coverage if a host has substantially contributed to a loss, an insurer may be able to deny a claim for a number of reasons, including:

A gathering involves the host making an income

The involvement of paid bartenders

The party is thrown as a fundraising event

A host’s knowledge that the guest was impaired and continued to serve liquor

The host failed to make arrangements for impaired guests (designated drivers, taxis, lodging, etc.)

Local or state law(s) related to providing alcohol

Hosts who take their responsibility seriously are those who make sure that parties are thrown responsibly, are done as a social (rather than business) event, and that the chances of sending drunken guests on the road are minimized. A good host will make sure that food is available, that a liquor supply under his or her control is cut-off and that impaired friends or relatives are prevented from endangering themselves or others. No celebration should end up with a lawsuit.

Questions about coverage for your special event? Contact your agent at Tague Insurance at 760-729-1143!

COPYRIGHT: Insurance Publishing Plus, Inc. 2001, 2010

Breaking Down Equipment Breakdown Protection

Equipment Breakdown Protection

This is a MUST READ for Tague Insurance Commercial Clients!! Call your agent to make sure you have this coverage on your policy!

Many businesses use commercial property forms to insure their tangible assets. However, they also need Equipment Breakdown Protection Coverage due to some limitations found in those same forms. An Equipment Breakdown Coverage policy handles a substantial loss exposure to items such as unfired vessels - Air, steam or water tanks, refrigeration systems, rollers, steam pressers, ironing equipment, steam cookers, generators, chemical processing tanks, motors, switches and controls, compressors, pumps, gears, etc. because commercial property policies typically exclude losses involving machinery or equipment breakdowns. The breakdown form provides the following coverages:

1. Property Damage - This coverage pays for direct damage to covered property (certain types of office machinery and equipment) that has to be listed (described) in the policy.

2. Expediting Expenses - This coverage applies to extra costs insured experiences in order to make temporary repairs and to speed-up (expedites) the permanent repair or replacement of damaged property.

3. Business Income and Extra Expense – Extra Expense Only - These coverages may, optionally, be purchased together; or to buy extra expense coverage alone. For example, a covered business loses most of its records due to a breakdown of its main server. Most of the costs associated with restoring the information would be covered by the equipment breakdown policy.

4. Spoilage Damage - Spoilage damage to raw materials, property in process or finished products is covered when that property is either in storage or in the course of being manufactured, the insured owns or is legally liable under written contract for the spoiled property and a lack of or excess of power, light, heat, steam or refrigeration caused the spoilage.

5. Utility Interruption - This coverage is available ONLY when a customer also purchases coverage for Business Income and Extra Expense – Extra Expense Only or Spoilage Damage. This coverage responds to loss involving equipment breakdown created by loss of utility service (gas, electric, water or communication). Also, the loss or service must last beyond the time-limit that appears on the policy (a sort of time deductible).

6. Newly Acquired Premises - This feature automatically covers newly acquired premises purchased or leased by the insured and the period of protection depends upon the length of time selected for this coverage (i.e. such as 30 days, 60 days, etc.).

7. Ordinance or Law Coverage - The Ordinance or Law Exclusion eliminates coverage for loss created by the imposition of ordinance or laws affect the rebuilding of the damaged property. This coverage pays such costs, within guidelines in the coverage, provided any increase in the loss amount is necessary due to the enforcement of any laws or ordinances in force at the time of the breakdown which regulate the demolition, construction, repair or use of the building or structure.

8. Errors and Omissions - This coverage pays for loss or damage that would have been covered except for the insured’s error or unintentional omission in describing covered property, a failure to include any premises owned or occupied by an insured when coverage began or, the insured’s error or unintentional omission that results in the company canceling coverage at one of the insured's premises.

9. Brands and Labels - This provision pays part of a company's expense to remove and re-label its own, salvaged merchandise.

10. Contingent Business Income and Extra Expense – Extra Expense Only Coverage -. This Protection applies to loss resulting from a breakdown to equipment at premises upon which the insured is dependent upon in order to run its own operation, such as a key materials supplier.

Be sure to talk to a qualified insurance professional at Tague Insurance in case you need details on how to best protect your critical business equipment.

COPYRIGHT: Insurance Publishing Plus, Inc. 2006

Insuring Your Bling

Most homeowner policies provide very limited coverage for jewelry. The reason for this is that jewelry is high-valued (especially in relation to its size), is easily lost or destroyed and is vulnerable to theft (as well as fraud). If you only own a modest amount of jewelry (say just a few hundred dollars), perhaps the limited coverage provided by a basic policy is adequate. However, when high values are involved, consider buying special insurance coverage (sometimes called a floater). A few options are available such as buying supplemental insurance that is attached to your homeowners or tenant's policy or purchasing a separate jewelry policy.

Discussing what is needed and expected from separate coverage is very important. Does the coverage consider jewelry values that increase over time? Does it cover mysterious disappearance (when you know the property is gone, but can't pinpoint when and how the property was lost) and other causes of loss, or just fire and theft? Discussing the coverage also helps you understand the steps you must take to make sure that you keep the maximum coverage in force and whether the coverage you receive is worth the additional price.

Documenting The Jewelry's Value
If the jewelry has just been purchased, a store receipt or certificate should establish the insured value. However, as time passes or circumstances change, the insured value must be reevaluated, perhaps by seeking an appraisal (expert opinion). Getting an appraisal that affirms your jewelry's current value is an excellent way to assure that your property is properly protected. Of course, make sure that you work with a competent appraiser (check their credentials and number of years of experience). It is also helpful to talk to a potential appraiser. Does she seem to have the necessary expertise? How willing and able is she to explain her work? There are several professional jewelry and appraisal associations that can give you information on appraisers and appraising methods. All of these items are important, especially since you have to pay a fee for an appraiser's services.

Handle With Care
Once you're certain about the value of your jewelry and the adequacy of its insurance coverage, you need to properly handle your jewelry. After all, who wants to actually file a claim? If you own a significant amount of expensive jewelry you may want to look into other precautions such as:

* Get new appraisals every two or three years, sending a copy to your insurer
* Take photos of your jewelry from several angles; again, share copies with your agent or insurance company
* Consider a quality in-home security system, including a hidden vault or storage area
* Take care on where and when your jewelry is worn to try to avoid becoming a theft target
* Keep original receipts and all appraisals, especially if they demonstrate that the jewelry's value is appreciating
* Ask your jeweler whether they have access to "Gemprint," or a similar jewelry identification system that documents a jewel's distinctive markings much in the manner of fingerprinting.
* Consider storing jewelry that is rarely worn in a bank or saving institution’s vault. (Note that such special storage often qualifies for an insurance premium discount)

Again, your first step is to talk to an insurance professional since he or she shares your concern that you have the protection you need at a price you can afford. Your Tague Insurance agent can let you know what your options are for insuring your valuable pieces of jewelry, and can help you get a quote. Contact them at 760-729-1143, or visit them on the web at www.TAGUEINS.com for more info!

COPYRIGHT: Insurance Publishing Plus, Inc. 1999, 2002, 2008