Insurance Incorporated

There are two parts to your liability coverage on your auto insurance policy: bodily injury and property damage.

Bodily injury liability covers injuries that result from an accident:

1. Emergency aid at the scene
2. Physician medical bill from accident
3. Restitution for lost income
4. Funeral expenses
5. Lawyer fees

Property damage liability covers the property damage caused by the car in accident:

1. Property damage to houses or other buildings
2. Repair or replacement costs for other stationary objects
3. Automobile restoration or replacement expenses

It is highly recommended from our agency that people get at least a minmum of $50,000/$100,000 for bodily injury and at least $50,000 for property damage. Increasing the limits to those amounts from state minmum doesn’t cost that much at all! Having only state law minimum for automobile insurance can easily be exhausted from just one accident. The high cost of medical bills can severely exhaust your limits resulting in the rest of the costs be paid out of pocket. Here at Insurance Incorporated, we want our clients to be protected properly with the right coverage, so that is why we highly recommend having higher limits than state minimum.

If you are a homeowner or have assets we recommend higher limits with a personal liability umbrella of $1,000,000 to protect you and your assets from lawsuits.

Named perils are events that a homeowners insurance policy specifies as covered, such as, lightning, fire, hail or windstorm, just to name a few. Depending on what type of policy you have, there are open peril or named peril homeowner policies. Named perils, you specifically name which perils your homeowners insurance will cover, on the other hand, open peril policies have broader coverage.

While a HO-3 policy is a much more comprehensive policy, the HO-2 policy covers 16 named perils:

1. Lightning or fire
2. Hail or windstorm
3. Damage caused by aircraft
4. Explosions
5. Riots or civil disturbances
6. Smoke damage
7. Damage caused by vehicles
8. Theft
9. Vandalism
10. Falling objects
11. Volcanic eruption
12. Damage from the weight of snow, ice, or sleet
13. Water damage from plumbing, heating, or air conditioning overflow
14. Water heater cracking, tearing, and burning
15. Damage from electrical current
16. Pipe freezing

Keep in mind, flood and earthquake are excluded from any homeowners insurance policy. They are their own seperate policies!

There’s been an on-going debate as who is the better driver. Is it men? Or is it women? Well, according to a national drivers test that was organized by GMAC Insurance, it was determined that men do.

According to the 7th Annual GMAC Insurance National Drivers Test, men had a test score that was slightly higher than 80%. That is significantly higher than females, who averaged just above 74%. What is more telling is that 27.2% of the women who took the test, failed. Compare that to the 13.6% of men who failed the National Drivers Test and we get a real sense of who knows the rules of the road better when it comes to men vs. women.

Men scored higher than women on a multiple choice test. That being said, it doesn’t really relate to the reality of driving on the road. To really be able to see who is the better driver, each man and woman would have to individually drive and be tested on their reaction, judgement, errors, etc.

Visit www.gmacinsurance.com and click on the National Drivers Test button to take the test and see how you size up when it comes to knowing the rules of the road.

Whether men are better or women are better, one thing is for sure that we all want to make sure we have the right auto insurance in place. The better driver would have the right protection in place.

Are you a LA Dodger fan? Are you a licensed California driver over the age of 21? Until June 30, 2011, Mercury Insurance has a promotion for those who complete a quote for auto insurance on www.mercuryinsurance.com to receive a redeemable voucher for two tickets to a LA Dodgers game!

Quotes must be completed by 11:59 p.m. June 30, 2011, to receive a voucher redeemable for your complimentary Dodger tickets

According to the 2009 FBI Computer Crime and Security Survey, 71% of American companies endanger their financial stability by not having insurance that will cover Internet liability.

Would you ever jump into a pool filled with sharks without the proper equipment or protection and bait attached to the side of your hip? Of course not! That is crazy, but essentially, that is what you are doing when your business is on the world wide web and you don’t have the proper protection in place. Think of the sharks as the individuals or groups that would be responsible for theft, extortion, defamation, and/or slander on behalf of your company that could be disasterous on your business. Think of the bait as your business’s website content, which is prone to intellectual property laws. These Internet exposures can be very damaging on your company.

Here are some scenarios:

1. If you send an e-mail containing a virus or malware, and customer information is compromise, you can be held liable.
2. If you or an employee acquired unauthorized access to another company’s information that is misued or stolen, you can be held liable.
3. If you or an employee publishes slander or defamation on the company’s blog, website, or any other Internet media, you can be held liable.

Technology is advancing, and businesses need to try and keep up with it. More companies are turning to computers to store data, such as, customer files, accounting, etc. That being said, you are at risk for these Internet dangers. A regular general liabilty and property policy would not cover your business for any Internet exposures. You would have to purchase cyber liability insurance. Cyber liability insurance offers coverage for data privacy, e-media and Internet liability, network security, infringement of intellectual property rights, professional services, and network security.

When should you get an umbrella policy? First, you should evaluate how much assests you have in your life. Generally, the more assests you have, the more protection you need.

An umbrella policy is an excess personal liability coverage that supplements your auto insurance and home insurance liability limits. It is in addition to those limits, thus, excess. For example, if you carry $250,000 for your auto liability limit per person, if you were to get into an serious accident, your auto policy would only pay up to $250,000 per person. Although, $250,000 dollars is a lot of coverage, it may not be enough if, for instance, the accident you got into had 5 people in the other vehicle, and each person suffered major injuries, you would be stuck with the rest of the bill, and the insurance company would only pay up to $500,000 maximum for that accident. For an accident like that, it could easily surpass those limits, which is why having an umbrella policy is very beneficial for a situation like that.

Of course, no one ever wants an accident like that occur, but it has happened. Are you going to be prepared if that times comes? Check with your agent to see if you need an umbrella policy, or maybe even to increase your limits. Having higher liability limits only benefits yourself, and it doesn’t cost that much. Purchasing an umbrella policy costs around 200 – 300 dollars a year for a million dollars worth of liability protection. You’ll probably never use it, but if you do, you’ll be glad you did.

Keep in mind, if you need an umbrella policy for your business, you would have to purchase a commercial excess liability policy. The umbrella policy mentioned above is for personal auto and home.

Visit our website at www.insuranceinc.com to find out more information or give us a call! (877) 468-2233

I’m sure most of you can tell that summer is just around the corner, and the season hosts an array of fun-filled activities, such as, barbques and swimming. Summer is also responsible for an American tradition: road trips. Although rising gas prices may slow down this tradition this Summer, here are some tips to have a safe and successful road trip:

Check your fluid levels
There are various car fluids that should be checked before a road trip. You should check your vehicle to have the right amoutn of antifreeze, engine oil, power steering, brake, transmission, as well as, windshield washer fluid.

Look for leaks
Check for any suspicious leaks that might be on your car. Check your driveway to see if there is anything on the ground that could be from your car. You want to especially check if there are any leaks on the gas tank. This could really put a dent on your wallet!

Check the air filter
A clogged air filter can cause up to a 10% decrease in fuel economy. Make sure you have a clean air filter in place.

Check all seat belts and car/booster seats
Make sure all of your seatbelts are in working order. If you are traveling with a child, make sure the booster seat/child restraint are propely installed.

Plan your trip in advance
You want to plan ahead and take the time to map out your course. Make sure you choose the most direct route to your destination. Always have a map or GPS handy just in case you find yourself not knowing where you are.

Observe the speed limit
Make sure you drive at the legal speed limit. This not only saves money on gas, but also helps to keep you and your loved ones safe.

First aid kit and roadside assistance kit
It is really important to keep a first aid kit and roadside assitance kit ready. Accidents can happen at any time, and the best thing anyone can do is prepare for one when it does come. Make sure to pack extra water, blanket, cell phone charger, flashlight, non-perishable food, battery-operated radio and extra batteries in case of an emergency.

Pack a cooler
To avoid multiple food stops, fill a cooler with pop, water and snacks. This will not only help you save time, it will also help you save money!

Entertainment
If you are traveling with children, it is good to keep them entertained on your long road trip. Bring portable DVD players, music cd’s, handheld electronic games, etc. The long road trip could be tiring on your kids, so entertainment will help make the trip more bearable, not just for you, but for your children as well.

Proof of auto insurance
The more miles you drive, you increase your chances are of getting into an accident. Make sure you have the proper insurance in place. You want to make sure you have the right coverages.

Being underinsured is one of the worst predicaments one can see themselves in when it comes to homeowners insurance. That’s why it is important to take the time and review your homeowners insurance at least 1-2 times a year. In doing so, it prevents any unpleasant surprises when a loss occurs (when amount of coverage matters most). There are a few occurrences that should trigger the time for a policy review, such as, your renewal date, major improvements to your home, and major lifestyle change.

Policy Renewal – When your policy renews, it is a good time for you to review your coverages. Take the time and call your insurance agent to discuss things matter. Here are a few questions you can ask when reviewing your policy:

1. Has the company made any changes since last year?
2. Should I raise my deductible?
3. Am I taking advantage of all the available discounts?
4. Do I need to raise the limits on the dwelling? Liability? Personal possessions?
5. Do I need flood, earthquake, or an umbrella policy?

Major Improvements to Your Home – If you have done any improvements to the home, such as, adding another room, improved flooring, rebuilt kitchen, etc., you want to make sure you have the proper amount of coverage that will reflect the increase of building costs from the improvements.

Burgler/Fire Alarm Installation – If you have installed a new fire and/or burgler alarm, you may qualify for a discount. Check with your insurance agent to make sure.

Major Lifestyle Change – Marriage, divorce, addition of children are just some examples of major lifestyle changes that should trigger a policy review. With these changes comes increased value of property, such as, personal belongings, and increase of needed protection.

Myth 1: Color – It has been said that the color of the vehicle determines the price of auto insurance. However, this is not true. It doesn’t matter what color your car is. What does matter is the type of vehicle you are buying. Whether it is a sports car, mini-van, or a truck, each vehicle has a certain value and driving factor associated with it. For instance, if you drive a sports car, people tend to drive faster than those that drive a mini-van. Not only is this characteristic imbedded in the car, but usually, those sports car are valued high as well. Auto insurance premium are based on the make, model, body type, engine size, the age of vehicle, the age of the driver, driving record, credit history, and zip code. They are also based, in part, on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. These include daytime running lights and anti-theft devices.

Myth 2: Age – It costs more to insure your car when you get older. Many drivers over 55 years of age can qualify for a reduction in auto insurance rates, typically for three years, if they have successfully completed an accident prevention course. Insurance companies will usually provide up to a 10 percent discount on car insurance, but check with your provider before you sign on. Mature driving courses are available through local and state agencies as well as through the AAA and AARP. You can also check with your insurance agent to find out which defensive driving courses are approved by your insurer. If you are retired or are not employed full time, you may also be eligible for a discount of up to 5 percent off your car insurance. Age requirements for this type of discount vary by state and insurance carrier.

Myth 3: Credit History – It has been said that your credit has no effect on your insurance rate. However, this does matter. Your credit history is a measure of how well you financially stand as well as how you manage your financial affairs. Many insurance companies take your score into consideration, because reserach has shown that people with a higher credit score get into less accidents, therefore, most would pay less for insurance.

Myth 4: Coverage if car is stolen, vandalized, or damaged by falling trees, flood, or fire – This coverage is optional. It is under Comprehensive and Collision coverage. If you have liability coverage ONLY, you will not be covered for these exposures. Make sure on your policy what you are protected from.

Myth 5: Minimium limits is enough! In California, by law, you must have bodily injury limits of $15,000/$30,000. However, one accident can far exceed that amount and you are most likely to pay more out-of-your-pocket for that loss. It is recommended that a minimum of $100,000 of bodily injury limit and $300,000 per occurance be on your policy. It’s to be sure that you have the right amount of protection for you and your financial assests.

Myth 6. If another person is driving your car, his or her auto insurance will cover them if they get in an accident. In most states, the auto insurance policy covering the vehicle is considered the primary insurance, which means that the auto insurance company for the vehicle must pay for damages caused by an accident. Policies and laws differ by state, and you should become familiar with these differences when allowing another person to drive your car.

Myth 7. Soldiers pay more for insurance than civilians. No matter what branch of the military you are in, you qualify for a discount on auto insurance. In some situations you might be able to have your commanding officer make a phone call on your behalf, but for most auto insurance companies, you will need to supply documentation that lists your name, rank and the time that you will be enlisted in the service. This allows insurance companies to determine how long you will be eligible to receive a military discount. Many auto insurance companies provide discounts for former members of the military and their families as well.

Myth 8. Personal auto insurance covers both personal and business use of your car. If you’re self-employed and use your vehicle for business purposes, personal auto insurance may not protect you. While auto insurance geared for businesses can be more costly than a personal policy, one of the best ways to keep your auto rates down is by having a good driving record. If there are others using your car they need to have good driving records too. Check the records of your employee drivers at least twice a year to ensure they maintain a clean driving record.

Sources: Insurance Information Institute