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!

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

The Business Owner Policy

If you own and/or run a smaller business, your insurance needs may be properly handled by a businessowner policy (BOP). BOPs are similar to a homeowners policy, offering both property and liability protection. Businesses such as retailers, wholesalers, small contractors, artisan contractors, dry cleaners, restaurants, offices and convenience stores (including those with gas pumps) are eligible for BOP coverage. All such operations may be insured by a BOP as long as they are not larger than 25,000 square feet in total floor area or have gross annual sales greater than $3,000,000 (per location). Cooking operations, due to the higher fire and other accident exposures, have significantly more restrictive guidelines, such as being disqualified for a BOP when it square footage exceeds, typically, 7,500 s.f.

PROPERTY COVERAGE
BOPs protect buildings as well as the following:

* building additions (completed or being built)
* indoor and outdoor fixtures
* machinery and equipment
* landlord furnishings,
* mowers, ladder, snowblowers, and similar maintenance property
* outdoor furniture
* floor coverings
* refrigerating appliances
* ventilating appliances
* cooking appliances
* dishwashing/Drying appliances
* clothes washing/drying appliances
* materials, equipment, and supplies
* temporary structures located near the insured premises

LIABILITY COVERAGE
The policy's protection for business personal property (such as office equipment, copiers, desks, etc.) applies whether the property is located inside or immediately outside the covered buildings. The category also includes property you own, lease or control (i.e., borrow or control) as long as the property is used by the business.

Businessowners liability coverage provides comprehensive protection for claims or suits made by other parties. Its liability section covers losses involving injury to other persons or damage to property that belongs to others. It also provides limited protection against personal injury (slander or libel), advertising injury and losses involving an operation's products or services.
Naturally, there are certain situations that are not covered by a BOP. For instance, there is no coverage for losses involving most vehicles, money and securities; illegal property (contraband), land, water, growing crops or lawns; or watercraft.

A BOP may be supplemented to provide additional protection. Property coverage options include adding insurance for accounts receivable, valuable papers and records, earthquake, spoilage, etc. Liability coverage can be expanded to handle additional business interests, limited vehicle liability, losses related to personnel situations, liquor liability and injuries to leased employees.
A BOP may be the answer to your company's coverage needs and it may be worthwhile to get more information on the BOP from the Tague Insurance Agency. You can also check out our website for information on obtaining a quote!

COPYRIGHT: Insurance Publishing Plus, Inc. 2004, 2008

The Scoop on Umbrella Coverage (Part 1)

If you've been wondering about umbrella insurance - what it is, how it protects you, and if you need it, this is a great place to start! The personal lines department at Tague Insurance can answer any questions you have about umbrella insurance and help you decide if it's right for you!

Let’s say you have a policy for your home and the cars driven by your family. You have just the right policy for the apartment you rent out to others as well as special coverage for your boating excursions. Your homeowner's policy even has a special, added coverage to handle the business that your spouse runs out of your home. Yes, it looks like you can be confident that you have all the coverage you need. But let’s take another look. Maybe you need an umbrella. An umbrella is the term for a liability policy that fits over your primary policies. Besides providing an additional (excess) level of coverage, it sometimes provides protection that is not available under your primary coverage.

Umbrellas are designed to be carried over a person's primary (also known as underlying) liability coverage. Primary refers to the fact that in the event of a loss, the liability portion of your auto or homeowner coverage is the first to respond. Umbrellas or excess liability policies respond to an eligible loss only after the primary insurance has paid its limit.

It's quite possible that your primary insurance limits provide more coverage than you'll ever need. However, circumstances could involve a type of loss that is not completely covered by a primary policy. For instance, your newly licensed child is driving the family car and slides on an icy highway. He ends up causing a chain collision damaging several cars and injuring a dozen drivers and their passengers. Or maybe you often volunteer to help transport members of your son's first grade class on field trips and you have an accident because you tried to beat a yellow light. If you don't have enough primary coverage, any shortage may have to come out of your personal assets.

Umbrellas generally provide additional liability coverage for the following underlying policies:

Personal Automobile
Homeowners / Farmowners
Recreational Vehicles
Watercraft
Personal Liability

The additional coverage may often extend to providing for related expenses, also on an excess basis, such as the cost of providing a court defense. Part two if this informative article will be posted in the next week or so. If you just can't wait, call Tague Insurance for your no-obligation Umbrella quote!

COPYRIGHT: Insurance Publishing Plus, Inc. 1998, 2002, 2008

Great Christmas Tree Safety Tips!!

Happy Holidays everyone!! Before decking the halls and lighting that tree, be sure to check out this great article on Christmas tree safety tips, and call Tague Insurance Agency if you have any questions about coverage that your homeowners or renters insurance may provide for potential holiday claims.

CHRISTMAS TREE SAFETY TIPS
15 Must Know Christmas Tree Safety Tips

Let's face these days it seems like there danger in everything we do. But don't worry there are plenty of safety tips to ensure there are no mishaps this holiday season. Below is a list of things you can do to make you have a happy, accident free holiday season.

1. Make sure you buy the freshest tree possible (brittle leaves is an indicator that your tree is dry)

2. Cut off a half inch of the trunk of your tree, this will allow the tree to suck in more water

3. When choosing a spot for your tree, make sure there are no heating vents, radiators, fireplaces or used electrical outlets.

4. Make sure your tree is not blocking any exits

5. Make sure you keep candles and other sources of fire away from the tree at all times.

6. Make sure your Christmas tree lights are for indoor use and are the correct voltage. Also only buy UL lights because they are tested for safety.

7. Try to use miniature lights, they produce less heat and are more energy efficient.

8. Make sure your Christmas tree stand is secure and stable

9. Give you thirsty tree a lot of water and re-fill it everyday

10. Check all of your lights for shorts before you put them on your tree

11. Shake your tree free of dry bristles before you take it inside

12. Turn your Christmas trees off at night and when you're leaving the house

13. Keep flammable items like curtains, paper and combustibles away from your tree

14. Have a fire extinguisher nearby for those rare emergencies

15. Discard your tree right after Christmas to avoid having a dry, dead fire hazard in your house!

And remember, most of all, to have a safe, and happy holiday season!

Tague Insurance - Insuring A Safe Summer

The article below has some great information on things you should consider as Summer approaches. Tague Insurance is here to help our clients obtain the insurance coverage they need to protect their families and businesses. San Diego County is a wonderful area with tons of fun Summer activities to do so make sure that you "insure" a safe Summer!



Are You Liable For Summer Fun?

Ready, Set, Summer!
Summer generally arrives with a huge surge in personal activities. School ends and parents start searching for leisure and recreational activities for themselves and their children. The activities range from elaborate vacations or summer-long camps to simply buying play and sports equipment (or getting it out of storage) and renewing park and pool passes.

Summer Fun's Dark Side
It is important to remember that good, clean fun can also have consequences when things go wrong. Using sports equipment such as tennis racquets, baseballs, baseball bats, Frisbees, lawn darts, or horseshoes has the potential to harm others. Danger accompanies the operation of skateboards, bikes, mopeds, go-karts, and radio-controlled cars, helicopters and planes. An even larger area of concern may involve inviting friends over to use your driveway, play equipment or swimming pool. The potential liability comes from either you having fun at the expense of other persons or their property, or failing to take precautions that persons you've invited to your residence (or other places) are safe to enjoy themselves.

How To Preserve Your Fun
The easiest way to prepare for your summer liability is to ask yourself some questions:
What can I do to keep other persons safe from my activities?
Am I prepared to be responsible for people I hurt or property I damage?
How do I make my home and yard safe for fun-seeking visitors?
Am I keeping my guests to various events safe?
While accidents happen, many can be prevented by making sure that you and your children enjoy your activities responsibly. Operating bikes safely and in low traffic areas reduces the chance that others will be hurt. The proper use of games and equipment also make the likelihood of having someone injured more remote. In other words, it's important that your family uses sports and game equipment safely and appropriately. Adult supervision is critical for potentially dangerous activities such as the use of motorized recreational equipment, trampolines, and swimming pools (including small wading pools). It's also important to make certain that guests you invite for camping or hiking trips are watched after carefully. In many instances, you are responsible for the safety of your guests when you invite them to enjoy outdoor activities, particularly boating or other activities involving water-related equipment.

Home Inspection
Another way to reduce the chance of others being hurt is to do an inspection of your home and yard. Do you have an adequate fence (with secure or self-locking gate) to protect young children from a pool when you're not around? Is your playground equipment well-maintained and strong enough to support the weight of the children using it? Is your yard and driveway free of tripping hazards? Are dangerous items such as tools, chemicals and lawn equipment kept out of reach of children? If you can answer "no" to any of these questions, you're inviting trouble.

Insurance Plays A Role
When accidents happen, they may be followed by medical expenses and, more seriously, lawsuits. You must be protected against such financial consequences. Don't assume you have coverage, especially when an activity involves motorized or powered equipment. You may have to add coverage to your homeowner policy or even buy special coverage for mini-bikes, mopeds, boats, all-terrain vehicles, etc.

So make safety a part of getting ready for summer fun. It's also smart to include a visit or call to your insurance professional to make sure you have the right coverage to support a fun summer.
COPYRIGHT: Insurance Publishing Plus, Inc. 2000, 2005


If you need to review your auto insurance, home insurance, or business insurance please contact Tague Insurance today. We are a local independent Carlsbad CA Insurance agent who has been writing insurance in Carlsbad and San Diego County for over 32 years! We love helping our clients get the protection they need by insuring the things that are most important to them.

Tague Insurance Agency
2801 Jefferson Street
PO Box 429
Carlsbad, CA 92018

Phone (760) 729-1143
Fax (760) 729-8617
info@tagueins.com
www.tagueins.com