**October brings on the cooler weather and there is a sense of newness in the air for some reason.  I'm not sure why the cooler weather makes people happier...there must be some kind of scientific research somewhere about it?  Don't you think?***

However, there still are things that happen to us humans that get us a bit heated up...  and I am here to talk about them  AND they usually have to do something with insurance! 

That's why I'm the Insurance Geek, I love insurance stuff! 

Anyway, I digress.

The other day I was looking at an MVR (motor vehicle report) and saw that this gentleman's license was suspended.  Most insurance people will not let you continue your insurance with a suspended license (because legally, you can't drive, so who is now driving your car?).  

I sent the agent an email to ask them WHAT'S UP? with this customer.  He told me that Mr. Doe was driving a friends car he borrowed and didn't ask the most important question you should EVER ask a friend..............

"Do you have insurance on this car?"

Well, he made a funky turn and got pulled over and of course was asked to produce an insurance card.  When the officer checked it out by running the VIN on the car, he discovered there was no insurance.  So they take the car (not always) and impound it.  And since YOU were driving with no insurance, not your friend, YOU get the ticket.

Now lets say, for some reason the same person pulled over didn't realize they were going to suspend his driving privileges, or he didn't make it to court.  If his license had already been suspended and he was pulled over, his little problem now became a big one cause he now has a MAJOR VIOLATION: Driving on a suspended license.  Doesn't matter if you didn't know (major violations stay on your record for five years).

So two things to get from this blog post:
1) Always ask your friend or acquaintances the big question about insurance before you borrow their car. (This always goes for you designated drivers if you are driving someone else).
2) If you move you have to change your address with the DMV!!!  Don't forget that is also a law! If they can't find you, they  may just suspend your license to get our attention!

Well as always, I have brought you more information than you'll ever know or want to know, but wouldn't I love it if you  post your own story here?    
YES !!!!

Happy October & cooler weather everyone!  (except maybe those who live in Arizona!)

WOW!!  No feedback on my last blog posting about auto insurance?? I'm kind of surprised.  Auto insurance is one of the things that really  make people  mad, even me!

Ever since I moved to Texas, my rates have been double what I was paying in Upstate New York (not down state, they are actually atrocious and not for the faint of heart!)  I couldn't understand why Texas rates were so high.  I thought maybe it would be a little better here, you know?

WELL, after driving on these roads I know why rates are so crazy....
                        "THEY SAY EVERYTHING IS BIGGER IN TEXAS! AND THAT
                                            AINT NO  LIE!!!"
Auto rates are BIG here!
Let me tell you why and maybe this will help you, wherever you are, to understand.

FIRST, Traffic going into Dallas is packed.  Lots of people going that way, and not much light rail or buses that I see.  Don't see much carpoolers either but some van pools.  How many people can a van pool hold, six maybe?

SECOND, Roads here are made of concrete, yes concrete.  Not sure why. Maybe my Engineer husband can tell me why. Anyway, they crack and there is much upheaval going on.  So the roads are almost like a see-saw... up and down!

THIRD, People are in a hurry here. Why?  Cause they are always late since there is so much traffic! They leave too late from home or the gym and now they are in a hurry.
BECAUSE  of these three top reasons, there are more claims here in the area and therefore...  YOU GOT IT!  Rates are higher.

I am sure there are hundreds more reason rates are higher here, but don't want to go on and on and bore you!

Oh one more thing, the other day I was driving on a main road and up ahead everyone was putting on their brakes,  OF COURSE I was in a hurry and running late!  Anyway, when I finally got closer to the problem, I see a calf running across the road with a rope tied around his neck and a cop car chasing it, staying behind it so he could keep it from running across the other side and getting in the other lanes of traffic.  The cop was acting like a sheep dog.. and it was working!  HAHAHAHA
It was so funny and I wished I'd had my camera ready to take a pic.  BUT, alas, I was in a hurry.
On my way to my dr. appt, I thought,

"ONLY IN TEXAS!!! "


Have a story you'd like to share about auto insurance?  Well, post it here, ya'll.........

How to keep from having ANOTHER accident.

As we drive to and from our many destinations each day, we run the risk of getting into some kind of scrape! Not that we want to, but it is always because other people either drive like crap or just won't get out of our way! When an accident happens, it is always inconvenient and never our fault.  Right?

But is it really NOT your fault?  

I know what you are thinking.... someone hit me, how can it be MY fault?

My newest job has me reading about claims all day.  As an auto underwriter, I get to decide, for the most part, if we will take action or not on a household. Taking action usually means:

• Non renewing the auto policy 
• Removing coverage 
• Sending a caution letter
• Following up on an undisclosed driver 

 So, as an underwriter my job is to figure out if the action is warranted by the details of the claim.   

I'll give you some examples~~~~~
Veh 1 was driving in lane 1, when Veh 2 came over in his lane. Veh 1 swerved and hit a pole. Veh 2 left the scene. 
Veh 1 was making a left turn into lanes of traffic. The vehicles in lane 2 & 3, let him in. As he was turning, lane 3 had veh 2 coming at 30 MPH who did not see veh 1 approaching from the side.  Veh 2 hit Veh 1.
Veh 1 was backing out of parking space at the local grocery store, veh 2 was driving through and hit him.
Veh 1  and veh 2 both were backing out of the retail store at the same time and backed into each other.
Last one- veh 1  hit a pothole in the road and did damage to his undercarriage.


I realize I made all these males, but please bear with  me for brevity's sake.  Thanks.



So, do you think you could have prevented any of these?   I say yes.  And even though technically you are not at fault. You really are.  Let me expound.
In the first loss, here's a tip: Don't be in a lane when there is someone right next to you. Either move up or move back.
The second loss, next tip: NEVER, i repeat, Never allow others to wave you through. When it comes down to it, YOU will have the at-fault loss & possibly violation on your record, not them!
The third loss, my tip: Always park pulling through the parking spot. There will never be a need to back up!
Fourth loss, This tip: see above.  Or just take your time and be very careful!!
Last one: This is hard because sometimes potholes are hard to miss.  If you leave plenty of room in front of you from the next car, you 'd be surprised how much time you will have to prepare if you get yourself in a bind. TIP:  Leave plenty of room in front of you in order to move into another lane if there is something in the road.

I say you are only at fault because you are not "Driving Defensively!" Every adult should know this and practice it every day.  And then share with your children/grandchildren;  He or she.
 
Was this helpful? Or did it make you mad?
 I'd love your feedback!!!   Even if  you disagree!!     
If they are helpful, then good luck.  I live these rules every day and I have not had an accident- at fault accident, in 36 years!
 Whoo Hoo!!!!

Department of Transportation just as well be in a foreign language!

Does anyone really understand all the FAQs?

The question someone asked me today was:

What do I do about insurance and purchasing a car in a state I don’t live in?

Many people do not understand that when you register a car, the insurance must match the registration. Every state wants to be sure you are in compliance with the state laws.  EVERY state requires you to carry liability insurance on a car you are driving on their roads. HOWEVER, each state determines how strict or lax they are in enforcing these laws.

               This may be why you get so many different answers when you ask someone. 

Getting on the Department of Transportation’s website?  Well, it can be so hard to find the answer on those web sites!  They just need to spell it out in human language, simply-- “You need an insurance card for the car you are registering in the state you are registering. Don’t waste our time unless you have one in hand!” I’m sure the department employees go through this every day; that may explain why some are devoid of human emotion or patience.

               Well I don’t blame them. It seems so easy to them. They do it EVERY DAY!

Let me ask you--how many times do you register your car in another state? How many times a year do you need an ID card from another state?  I’m guessing not very often!

Just in case this does happen to you, here are the steps:

·        Determine which car you are going to buy

·        Tell your insurance agent the year, make, model, odometer & VIN

·        Pay the first month’s payment on the insurance (You should always expect there will be an initial payment for the insurance) over the phone

·        Get the Insurance card by email or fax (depending on where you are and how fast you need it and what the agent’s requirements are for delivery)

Once you have the Insurance card, you have insurance on that car. This is a Temporary card; expect a permanent one in the mail in about 30-60 days. If you do not get one, you must contact your agent, ASAP!

Insurance can be boring, but unfortunately, it’s necessary!

Insurance is one of those things that is not important until you need it.

I can hear those of you who’ve had that experience yelling, “YES”!!

Well, don’t be afraid to stand up and share your story. It always helps to share your story so that those you love will not have to experience what you experienced and NOT have insurance. 

So, Share it baby!!!

All you need to make sure that you are set and have the right protection is an agent who is patient, knowledgeable and will take the time with you.  BUT WAIT!!

You need to be patient too.  Explaining takes a long time some days!   So make the time!

Hopefully your agent is one of those. My experience is most agents are patient & knowledgeable and want to explain those things to you.  They care about you and do not want you to come up short if you experience a life set-back.  

So take the time, ask questions and seriously consider what they say. Take them as seriously as you would a financial planner, a retirement planner or your momma!

I would love to hear YOUR story about any kind of insurance product you've had experience with!  

WILL YOU SHARE IT HERE?

MY RATE WENT UP AGAIN!!

Insurance rate increases! That annoying thing that seems to occur every renewal, whether it is every six months or once a year! They never seem to go down, EVER!

We all dread having to call our agent to find out, “what’s up with my rate?”  We are secretly hoping the insurance company didn’t find out about a ticket or an accident we had. 

So what if it’s not related to a ticket or an accident?

Back in 2010 an article was written about insurance rates. But this article addressed one aspect of what the public uses as the reason and disputes it. You can view the article here: http://www.huffingtonpost.com/joanne-doroshow/heres-really-why-your-ins_b_775077.html

There are many reasons rates go up and we may not like them because we do not understand them.  So let me explain very simply.

Insurance is based on statistics. For example:  If you “statistically” live in an area that has more accidents than other areas, you are bound to get into an accident. Insurance companies uses the past year or past couple of years to predict the future. They look at territory, type of vehicle, age of driver, sex of driver, driving record and coverage paid out the most. They also look at amounts of coverage you carry. 

LET ME EXPOUND.

TERRITORY

If the area you live in has an accident on the corner by your house once every week or two, insurance companies predict you will eventually be in one of those.  If you live in an area that is rural and not much traffic, the prediction is that you will not get in an accident anytime soon. Each year or two, insurance companies re-evaluate territories for accident history.

TYPE OF VEHICLE

Each year insurance companies evaluate what types of vehicles are stolen most often. You can check out Forbes for an article that was written about cars most stolen in 2011.  Here is the link:  http://www.forbes.com/sites/hannahelliott/2011/08/02/the-most-stolen-cars-in-the-country/

Also, vehicles are evaluated based on how well they do in an accident.  If your Toyota RAV-4 does well each time it’s in an accident, (doing well is defined as not incurring a lot of damage or keeping the passengers safe) then the premium for that RAV-4 will most likely go down. Now, if you have one of these vehicles, I am not saying your premium will go down.  Most likely there are other factors involved in your rate; which leads us to the next item.

AGE OF DRIVER

If you are a new driver, you are not very experienced driving on the roads. There is a chance, or prediction, that you will probably get in an accident. Some companies will apply an “inexperienced operator surcharge” to your policy because statistics have proved that you will get in an accident. It doesn’t seem fair, but statistics don’t lie.

SEX OF DRIVER

We all know that male drivers are more aggressive on the roads than females. Once again, this does not mean all male drivers.  When reports are scrutinized, they usually show more males are in accidents than females. Sorry guys.

DRIVING RECORD

Your driving record can be a bummer. Especially since it follows you for SEVERAL years! You may have sworn off getting any more tickets, but insurance companies will base your rate on those for three years, sometimes five!  A minor violation is usually a speeding, running a red light, missing a stop sign, turning on a red light when indicated not to or talking on your cell phone. They usually are counted for three years. A major violation is drunk driving, driving under the influence of drugs, driving on a suspended license (whether you knew it was suspended or not), running over a person on purpose, or leaving the scene of an accident. (Speeding in excess of 85 miles per hour can also be listed as major, depends on the state).

So based on your driving record, insurance companies predict how you will be driving. And that prediction ties in to how many accidents you will probably have or cause.  It’s similar to a trust issue you might have with your parents, partner or friends.  Once you have proven you can’t be trusted, it takes extra effort to gain that trust.  Once your ticket falls off after three years or five years, you can be trusted with lower rates again. (Once again, driving record does not completely drive the rates. I am  not promising lower rates when violations fall off).

 

COVERAGE

This is what you have chosen to put you back in the same financial situation you were in before an accident.  This is the sole reason for insurance. What coverage you choose is very important. If you have physical damage on your car, deductibles make it possible to share with the insurance company in the loss. This affects your insurance premiums.  Higher deductibles, lower insurance premiums.  And the insurance company knows with higher deductibles you will most likely submit fewer claims. The lower your deductible, the more claims you probably will submit.

When you have lower liability limits insurance companies assume many things about you.  Because rates are all about predictions, sometimes the assumptions do not apply to you.   However, it is the only way they can determine rates.  Discounts are offered as a way to give you credit for some of those predetermined “predictions”.   

When you have lower liability limits an insurance company is obligated to represent you in a suit. Whether your limits are state minimum or the highest a company offers, the obligation is still there. So an Insurance company spends the same amount of time & money for you with low limits versus higher limits. The difference is once your limits are reached, they no longer have an obligation to represent you.  Higher limits are better every time. If you can’t afford higher limits, then you need to find a middle of the road rate.  Skimp somewhere else, but not here.

 

So as you can see, explaining a rate increase isn’t always easy or even fun for an agent.  If it’s just a plain old company rate increase, you can google your company and find out yourself why.  Usually it’s because the company had more money going out in claims than it did coming in for premium.  This is another reason predicting which company will have a rate increase is almost impossible. 

As an insurance broker, we switch our policyholder to another company for lower rates one year and then the next year that company raises their rates!  It’s maddening!  But we would never know which company would take a rate increase. If we did, it would be pure guessing.

 

So next time your rate goes up, do some research of your own.

1)      Find out if your car is on the “most stolen” list or not as safe in accidents as you thought.

2)      Find out if your area you live in has had a plethora of accidents in the last year or so. (you might already know this if you had witnessed any of them).

3)      Check your motor vehicle record, had any violations you forgot about?

4)      Did you just add a young driver to your policy?  A son or daughter that is brand new to driving

 Here is a great cite for reading up on insurance situations with your car & the law:

http://www.ilawyer.com/iLawyer-com/Insurance%20Law/Insurance_Law_NY.cfm

 Most of us know it already, but it’s a great idea to brush up every once in a while.  Let me know what you think, I welcome comments.

My  next post will discuss your motor vehicle record and how insurance companies determine a violation.  STAY TUNED!!!

What policy to buy?

Most of you already have an insurance policy and pretty happy with your current agent or insurance company~~at least until you have a claim.

That’s when the insurance company really shines, or really stinks! 

The mendacious claims process!  Who do you call? What do you do?  How long does it take?

WHY ME!!! 

I actually heard of an insurance company whose claims adjuster came out, assessed the damage and wrote a check. Now THAT was amazing!  

That is not your everyday insurance company.  

When you are shopping the best thing to do is to check into how many insurance department complaints it has had.  Check into what others are saying about claims service and make sure you find out if it has enough money set aside to pay the claims. This would be their surplus.

Let’s talk about Surplus for a second; The definition of surplus=assets that outweigh liabilities.  This does not mean its “extra” money sitting around. You might ask if this should be returned to you.  If it is more than a certain amount of “surplus”, they elect to give it back to you in “dividends”.  That doesn’t always happen because insurance companies do not want to give that up. They know that when it comes to claims service, THIS IS WHAT DEFINES THEM. And it they can’t pay their claims, they are no good.

Most insurance companies provide the same policy and coverage. It is better for them to be easy and go along with what everyone else does.  Some have a different coverage here or there, for example, diminishing deductibles, coverage for your pet if  he’s in the car & dies from an accident, overseas rental car coverage or mechanics coverage for newer cars.  You just have to decide then and there if that is something that is beneficial to you.

I would suggest you go with the service you will be provided, because after all, we don’t need our insurance company until we have a claim. 

Let me know your thoughts or ideas!  Post comments!