Auto Insurance: Part II

Read information from Travelers below to find out how to decide what kind of, and how much, auto insurance you need.  Also, learn about how to decipher your policy once you receive it!

What should I consider when purchasing auto insurance?

"When purchasing auto insurance, make sure you find coverage that fits your needs. Think about you and your family's specific circumstances, including your risk tolerance and your budget. If you aren't sure what type of things you should consider, read below. Or, give us a call!

Below are a few simple questions to help you start evaluating your needs.

1. What is my household salary? What are my assets? How much in savings and equity do I have? Generally, the higher your salary and net worth, the more you stand to lose if you are ever found liable for an accident. The more assets you have, the more coverage you might want to consider.
2. How old is my car and how much is it worth? Do I own my car outright or is it leased or financed? The model year and original cost of your car helps determine the approximate value of your car today. If the value of the car is low and you own it outright (i.e. no loan or lease), you may want to think about whether you really want comprehensive or collision coverages. On the other hand, if you lease or finance your car, your lender or car dealership probably requires comprehensive and/or collision coverage.
3. How much am I willing to pay out-of-pocket? Deductibles are applicable to certain coverages, such as comprehensive and collision coverages. In the event of a loss, a deductible is the amount that you must pay out-of-pocket before your insurance kicks in. A higher deductible could lower your premium.
4. Do I have health insurance? Auto insurance can include medical payments coverage for you and your passengers. If you don't have your own health insurance, you should consider purchasing some type of medical payments coverage on your policy.
5. Do I have children of driving age? Children are generally more inexperienced drivers and can present a greater risk on the road. If you have children of driving age, you might want to consider purchasing higher limits of liability coverage. "

What is in my auto insurance policy, and how do I read it?

"An auto policy generally consists of three main parts, which together, form your auto policy:

1. Declaration page - the declarations page (or "declarations" or "dec page") displays information specific to you and your policy. This will usually include the name of the policyholder, your policy number, the policy term, limits of liability and deductibles you selected and the policy premium. It can also display other items such as discounts applicable to your policy, other drivers on your policy and specific vehicles insured. In addition, it will show the other documents that form your policy (in other words, it will tell you what base policy and endorsements make up your policy). The declarations page is usually longer than just one page.
2. Base Policy - this document spells out the basic provisions of the insurance coverage and the responsibilities of the insurance company. It also sets forth your responsibilities, which include paying your premium and telling the company when you are in an accident.
3. Endorsements - endorsements alter the base policy, just like an amendment alters a contract. Endorsements can add, broaden, limit or delete coverage or change the base policy in any other way.

It is important to read your declaration page, base policy and any applicable endorsements together, as they collectively form your insurance policy.
Note, auto ID cards, which generally arrive with your policy, do not actually form part of the policy. Rather, they provide a convenient way to show that you have insurance. They contain some basic details about your policy, such as your policy number, policy effective date and the specific vehicle insured. Some states require that you keep these in your car as proof of insurance."

If you still have questions about auto insurance, don't hesitate to give us a call.  We're happy to help!

Source:  https://www.travelers.com/insurance-basics/auto/the-basics.aspx

 

Auto Insurance: Part I

Below is some information from travelers.com to help you learn more about auto insurance and what you do and don't need in an auto policy!

What is auto insurance?

"Auto insurance is meant to protect you if you cause injuries to others or damage their property in an auto accident. It can also provide protection if your car is damaged in an accident or is stolen. What protection you have is spelled out in your auto insurance policy.
An auto insurance policy is a contract between you and an insurance company. You, the customer, pay a certain amount ("premium") to the insurance company in exchange for a set of coverages you selected. Your policy sets forth what the insurance company will or will not cover."

What does auto insurance cover?

"At a high level, auto insurance typically provides four basic things—liability coverages (for injuries to others and damage to their property), coverage for damage to your car or cars, coverage for medical expenses and uninsured motorist coverages (for situations where someone without enough insurance injures you or a family member). There are a variety of coverage options available; they may vary by state and company."

What are the common coverages for auto insurance?

"Below are some simplified descriptions of common auto insurance coverages. All coverages are subject to the limits, terms and conditions of the actual policy you purchase.
 
Bodily injury liability coverage generally pays damages for bodily injuries to the driver and passengers of the other vehicle when you are responsible for an accident. It also provides coverage to defend you if you are sued because of an auto accident.

Property damage liability coverage generally pays for damages to another person's property (e.g. their car) when you are responsible for an accident. It also provides coverage to defend you if you are sued because of an auto accident.

Medical payments coverage generally covers you, household relatives and your passengers for medical expenses that result from injuries sustained in an auto accident. It also covers you as a pedestrian if you are hit by a vehicle. 

Some states have personal injury protection (PIP) in place of, or in addition to, medical payments coverage. This is also known as no-fault coverage. PIP can generally pay for medical expenses, funeral expenses, loss of income and other expenses for injuries or death due to bodily injury sustained as the result of a car accident.

Uninsured or underinsured motorist bodily injury coverage generally pays for damages for bodily injury to you and your passengers when caused by another in an auto accident and the person legally responsible either has inadequate or no insurance. This coverage varies greatly by state. In some states it may be a combined coverage, while other states may offer it as two separate coverages (e.g. one for uninsured motorists and one for underinsured motorists).

Collision coverage generally pays for damage to your car if it hits another car, object, or overturns. A deductible applies to this coverage.

Comprehensive coverage generally pays for damage to your car if it is stolen or damaged by certain causes other than collision, such as fire, theft, hail or vandalism. A deductible applies to this coverage. "

In our next post, we will be discussing what to consider when you are shopping for auto insurance, and what an auto policy consists of. 

For more information, check out the Travelers Insurance Company website at:  https://www.travelers.com/insurance-basics/auto/the-basics.aspx

Renters Insurance

Check out the information below from the Insurance Information Institute to get the ins and outs of renters insurance:

Renters insurance provides financial protection against the loss or destruction of your possessions when you rent a house or apartment. While your landlord may be sympathetic to a burglary you have experienced or a fire caused by your iron, destruction or loss of your possessions is not usually covered by your landlord’s insurance. Because in most cases, renters insurance covers only the value of your belongings, not the physical building, the premium is relatively inexpensive.
By purchasing renters insurance, your possessions are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods). Like homeowners insurance, renters insurance also covers your responsibility to other people injured at your home or elsewhere by you, a family member or your pet and pays legal defense costs if you are taken to court.
Renters insurance covers your additional living expenses if you are unable to live in your apartment because of a fire or other covered peril. Most policies will reimburse you the difference between your additional living expenses and your normal living expenses but still may set limits as to the amount they will pay.
There are two types of renters insurance policies you may purchase:

1. Actual Cash Value – pays to replace your possessions minus a deduction for depreciation up to the limit of your policy
2. Replacement Cost – pays the actual cost of replacing your possessions (no deduction for depreciation) up to the limit of your policy

With either policy, you may want to consider purchasing a floater. A standard renters policy offers only limited coverage for items such as jewelry, silver, furs, etc. If you own property that exceeds these limits, it is recommended that you supplement your policy with a floater. A floater is a separate policy that provides additional insurance for your valuables and covers them for perils not included in your policy such as accidental loss.

Source:  http://www.iii.org/article/what-you-need-know-about-renters-insurance

Homeowner’s Insurance

Have questions about homeowner’s insurance?  Read this blog to get some answers!

What it covers:

Most home insurance policies will pay for damage to your home and possessions in the events of storms, fire, theft, or vandalism.  Home insurance also provides liability insurance if someone gets hurt on your property and decides to file a lawsuit.  Home insurance can also cover the cost of a hotel if you are temporarily displaced from your house.

What it doesn’t cover:

Standard policies have exclusions, including: earthquakes, power failure, war, nuclear hazard, government action, faulty zoning, bad repair or workmanship, and defective maintenance.  

Flooding and water damage are usually only covered in certain conditions.  As a rule of thumb, water from above - like a burst pipe in the ceiling - is covered.  But, water from below - like a backed up sewer - usually isn’t.  Be sure to talk to your insurance agent about the details of your policy.  You may want to consider purchasing supplemental coverage, based on your situation.

Shop around:

This is what Barry Insurance excels at!  We represent dozens of insurance companies, and can shop them all to compare prices and coverage to find you the best deal.  Finding a cheap rate is great, but also remember to take into consideration what the policy does and doesn’t cover, and the quality of the insurance company offering the policy.  Barry Insurance only represents quality insurance companies, so you can rest assured that you are in good hands with us.

How to lower your rates:

Did you know that having things like a working smoke detector and burglar alarms can lower your rates?  Preventative actions can reduce premiums in some cases.  Sometimes, by reducing your liability risks, you can qualify for lower rates.  

You may also be able to save money by bundling your other insurance policies, like car or life insurance, with your homeowner’s insurance.

Keep a record:

It’s important to document everything that occurs during a loss.  Write down the damages, and what you have done to help mitigate the damages.

In addition to saving receipts, contracts, and appraisals, document phone calls by writing down who you spoke to and when.  Don’t depend on your memory alone to remember all the details.

How jewelry is covered:

Jewelry is usually covered in a homeowner’s policy - but beware - it is typically only covered to a certain amount.  When you sign up for for homeowner's insurance, be sure to ask us about the limits.  If you own jewelry which has a value that exceeds the standard policy, you may want to consider buying supplemental insurance so that in case it is lost or stolen - you are covered 100%.  

Still have questions?  Give us a call or email and we will be happy to help!

Source:  legacylendinggroup.com

So What Insurance Do I Need, Anyway?

Insurance:  there’s a different kind for every color under the sun, and it can sometimes be overwhelming to try to figure out what you need, and what you don’t.  Here’s the basic question you need to ask yourself:

What would be difficult to replace if it was lost/stolen/destroyed today?

Start big, and work your way down from there.  Your house and car are good places to start.   Then think of other purchases that would be difficult to replace.  How about your (or your spouse’s) engagement ring?  

What about less tangible things, like your health, or your ability to work and take care of yourself.  What about your income for loved ones that would survive you in the event of your death.  What about loss of savings due to a lawsuit?

To help you sort out which kinds of insurance you do and don’t need,  in the coming weeks we will be featuring a blog series highlighting different types of insurance, what they do and don’t cover, and whether or not you need them.  So stay tuned!

In the meantime, below is an overview of types of insurance and what they cover:

Homeowner’s:  covers your damage to your home and property, and often includes coverage for injuries to non-residents who are injured on your property.  Homeowner’s policies can often include coverage for special high-value items (like engagement rings).  Talk to your insurance agent for details.

Renter’s:  covers your belongings located within a rental property, and damage to the rental property that you may be held liable for.

Auto:  liability insurance covers damage caused by your vehicle to the vehicles/property of others, and is required by law in order to register your vehicle.  Full coverage auto insurance covers liability, as well as damage to you or your vehicle/property caused by you or a third party, or a force of nature.

Health/Medical:  covers costs resulting from major medical events such as hospital stays, and may also cover part of the cost of doctor visits and prescription drugs, as well as procedures like vaccines and lab tests

Life: pays a sum of money to those left behind in the case of the death of the covered individual.  The sum can be used for anything, but is often used to help offset funeral costs and loss of income from the death.

Disability:  In the event that a covered individual is disabled and cannot work, disability insurance pays out monthly sums to replace part of the loss of income.

Dental:  covers routine dental visits, as well as dental procedures, up to a certain amount.

Vision:  covers visits to the optometrist, as well as prescription eyewear.

Long Term Care:  covers the cost of long-term in-home nursing care or costs incurred from the use of assisted living facilities such as nursing homes.

Accident:  provides extra coverage in the event of an accident, such as costs for emergency room visits, tests, and treatments that your regular health insurance doesn’t cover, as well as travel and lodging costs.

Cancer: provides extra coverage for doctor visits, hospital stays, and treatments resulting from cancerous illness.

Personal Umbrella Coverage:  provides extra coverage beyond homeowners and auto insurance for liability claims and lawsuits.

RV:  covers damage to (or caused by) your camper or motorhome and any trailers being pulled by the covered RV, as well as its drivers and passengers.

Motorcycle:  like auto insurance, motorcycle insurance covers damage to  (or caused by) your motorcycle and its drivers and passengers.

Still have questions about which insurance you do and don’t need?  Call or email us, and we’ll be glad to help you figure it out!

Are you ready for winter?

It’s that time again, winter is coming.  Not only does that mean cooler temperatures, hunting season, and the holidays, it also means harsh weather, flu season, and the possibility of snow or ice.  Are you prepared for winter?  Although the season officially begins on December 22, cool weather begins much sooner.  Take these steps to make sure that you’re ready for all that winter throws at you.

Winterize your home.  Replace damaged weather stripping around doors and windows, insulate exposed pipes, and clean out gutters.  Check your heat.  Have your heating system cleaned and serviced by a professional to ensure that it is working and ventilated properly.  Clean out fireplaces and chimneys, and test batteries in smoke detectors.  It is also a good idea to install a carbon monoxide detector.  This colorless, odorless gas is deadly, and is produced by appliances that use natural gas, LP gas, oil, kerosene, coal, or wood.  It is important to ensure that such appliances are properly ventilated to avoid carbon monoxide poisoning.  The symptoms of carbon monoxide poisoning include headache, fatigue, nausea, dizziness, and confusion.

Prepare an emergency kit in case of a weather emergency or power outage.  Include food that does not need refrigeration, water, batteries, a flashlight, radio, first-aid kit, and extra medicine. 

Now that you’re prepared for winter inside, take these steps to stay safe outdoors during winter.  Wear layers of light, warm clothing, mittens, hats, scarves, and waterproof boots.  Avoid traveling when the weather service has issued advisories, inform family of travel plans and expected time of arrival, and carry a cell phone.  Make sure your car is ready for winter, too.  Service the radiator and refill antifreeze if the level is low, check to make sure the tread of your tires has not worn down, and use a wintertime formula in your windshield washer.  Keep a winter emergency kit in your car that includes an ice scraper, blankets, food, water, jumper cables, a compass, maps, and a flashlight.  If you are ever stranded in your car due to winter weather, run the engine and heater for only ten minutes every hour, keep a downwind window open, and make sure that the tailpipe is not blocked.  Stay visible by putting bright cloth on the antenna, turning on the overhead light while the engine is running, and opening the hood once snow stops falling. 

During a winter emergency, check on neighbors and family who are especially vulnerable to cold weather, such as young children, the elderly, and the chronically ill.  Bring pets inside if possible; if not, provide them with a warm shelter and unfrozen water to drink. 

Winter will be here before you know it.  Follow these steps to prepare for winter, and you will be safe and comfortable when it arrives. 

Race for the Cure

Saturday, the staff of Barry Insurance will participate in Race for the Cure, an event inspired by Susan G. Komen’s battle with breast cancer.  This incredible foundation has brought breast cancer from an over-looked and little talked about condition to a monumental movement made up of a network of survivors and supporters.  The Susan G Komen Race for the Cure has done more for breast cancer research than any other non-profit organization.  The following information was taken from komen.org, to provide some background information about this extraordinary foundation.

“Susan G. Komen fought breast cancer with her heart, body and soul. Throughout her diagnosis, treatments, and endless days in the hospital, she spent her time thinking of ways to make life better for other women battling breast cancer instead of worrying about her own situation. That concern for others continued even as Susan neared the end of her fight. Moved by Susan’s compassion for others and committed to making a difference, Nancy G. Brinker promised her sister that she would do everything in her power to end breast cancer forever.

That promise is now Susan G. Komen for the Cure®, the global leader of the breast cancer movement, having invested more than $1.9 billion since inception in 1982. As the world’s largest grassroots network of breast cancer survivors and activists, we’re working together to save lives, empower people, ensure quality care for all and energize science to find the cures. Thanks to events like the Susan G. Komen Race for the Cure® and the Susan G. Komen 3-Day for the Cure®, and generous contributions from our partners, sponsors and fellow supporters, we have become the largest source of nonprofit funds dedicated to the fight against breast cancer in the world.”

The legacy that Susan G. Komen began continues this weekend in Texarkana.  Each year the event grows stronger, and at Barry Insurance we're excited to be a part of it.  We look forward to seeing you at Race for the Cure on Saturday.  We’ll be there bright and early; stop by our booth and see us!