Auto Insurance 101

Protecting what matters.

Why do I need car insurance?

Insurance laws vary from state to state, but all states require some type of insurance or proof of financial responsibility. Even though it may seem like an “extra” cost, car insurance protects you, your family and your vehicle if you’re ever in an accident or if your vehicle is damaged.

Several factors, including your driving record and insurance history, affect the type of insurance policy available to you. If you have a clean driving record and have been insured in the past, you’ll most likely qualify for standard auto insurance.

Generally, if you haven’t had insurance, or have a less-than-perfect driving record, you can still qualify for auto insurance. This type of insurance is known as specialty insurance.

Your auto policy may include six coverages, each priced separately:

1. Bodily Injury Liability applies to injuries that you, the designated driver or policyholder, cause to someone else. It’s very important to have enough liability insurance because if you’re involved in a serious accident, you may be sued for a large sum of money. Definitely consider buying more than the state-required minimum to protect assets, such as your home and savings.

2. Medical Payments or Personal Injury Protection (PIP) pays for the treatment of injuries to the driver and passengers of the policyholder’s car. At its broadest, PIP can cover medical payments, lost wages and the cost of replacing services normally performed by someone injured in an auto accident.

3. Property Damage Liability pays for damage you (or someone driving the car with your permission) may cause to someone else’s property.

4. Collision pays for damage to your car resulting from a collision with another car or object.

5. Comprehensive reimburses you for loss due to theft or damage caused by something other than a collision with another car or object.

6. Uninsured and Underinsured Motorist reimburses you if you’re hit by an uninsured or underinsured driver, or a hit-and-run driver. This coverage will also protect you if you’re hit as a pedestrian.

To learn more about car insurance, call the agency at 434-793-6611 or go online at http://www.wawells.com

 

Life Insurance – You Do It For Love

What do love and life insurance have in common? More than you might realize. Think about it. The main reason you buy life insurance is because you love someone. Think of it as the ultimate act of selfless love. In all likelihood, you won’t be around to see or experience the death benefits of a life insurance purchase. But the proceeds of a policy could benefit your loved ones for many years after you’re gone.

Life Insurance – Now More Than Ever

A life insurance purchase may be the wisest and most loving purchase you can make during these uncertain economic times. Recession, massive layoffs and falling stock and bond prices seem to be knocking over the pillars of our financial security, one by one. All of us have been hit with painful losses in the value of our homes and in our savings and investment accounts. One source of financial security still stands strong, however, and that’s life insurance.

Your current income or emergency savings may be paying today’s bills. But if you died tomorrow and your income disappeared, how would everyday bills get paid? While it may seem difficult nowadays to look beyond the bills that are due today, it would be a huge mistake to cancel or cut back on your life insurance if your need for coverage remains. In fact, with less savings to fall back on because of the state of the economy, you should meet with a life insurance professional right away to make sure you have enough life insurance. When you die, the amount of life insurance in place could mean the difference between a future of financial security for your loved ones or a future filled with financial hardship and uncertainty.

How Much Life Insurance Do You Need to Protect Your Loved Ones?

The LIFE Foundation is the leading source on the Internet for unbiased information about life insurance. Here are some helpful links to help you determine if you need coverage and, if so, how much and what kind you might need.

• Who needs it?
• How much do I need?
• Life insurance needs calculator
• What are the different types?
• Where do I buy it?

Smoke Alarm Reminder…

 

This is a good idea!   

http://www.dps.state.ak.us/Fire/TEB/docs/SmokeAlarmReminder.pdf

Preventing water damage can save money, prevent headaches…

A water damage claim can not only cost you money out of pocket in the form of your deductible and possibly higher premiums, but it can be a hassle too. Although there are some types of water damage that are unavoidable, others are if the homeowner would take some preventative steps.

Two easy outdoor things that homeowners can do to prevent water damage to their home is to keep gutters clean and take care of their trees. Keeping the gutters clean prevents water from backing up and damaging the fascia, soffit or interior walls. Overflowing gutters often splash huge amounts of water at the foundation which could lead to wet basement walls and floors and damage to carpeting, furnishings and wall coverings. Cutting down dead trees and pruning dead limbs can prevent possible roof damage that could lead to subsequent water damage.

An interior item that is often overlooked is the water supply lines to the washing machine. Some of the largest water losses our clients have experienced came from a ruptured supply line. These supply lines are under constant pressure and eventually deteriorate and burst. This is a $10-15 item in most home stores and should be checked regularly and replaced every few years. Believe me, it is not fun to come home from a week-long vacation to find that you are ankle deep in water throughout your house.

If you have questions about your home insurance, please give us a call at the office.

Know what to do with your life insurance in tough financial times…

When tough economic times come, many households look for ways to cut expenses. Salary cuts and job losses are among the many reasons why expenses need to be cut, but when the question to cut life insurance arises you may want to think twice before you choose to cancel your life insurance policy.

In tough financial times it is quite the opposite when it comes to considering canceling life insurance. When a financial crisis hits it is most likely the time to add to your life insurance benefit amount or purchase a policy if you don’t already have one.

Give our office a call if you have questions about your life insurance.

Recently Heard This Quote…

“Use your insurance for things that will ruin your life NOT your day”

ITV – What is it, and why should I care?

 

ITV stands for Insurance To Value.  It is the amount of insurance necessary to reconstruct your home in the event of a loss.  In a market where you can likely buy a home for less than it would cost you to build it, why are insurance companies asking you to insure your house for more than you can buy it for?  In short, reconstruction costs more than new construction.

 When there is a major loss to your home from say a fire, or water damage from a burst pipe, a contractor that specializes in these types of losses is called in.  They first stabilize the loss site, and then take actions to prevent the loss from getting worse.   After that, there is a phase of deconstruction or demolition, followed by reconstruction, cleaning, painting, etc.  Special equipment is often required as is special knowledge and experience.

 According to a survey conducted by Marshall Swift/Boeckh, two out of three homes are underinsured.  MSB is a 70-year-old company that specializes in estimating reconstruction costs, and their annual reviews of more than 3 million homes shows that the typical homeowner is underinsured by 27%.

 The National Association of Home Builders tracks building costs regionally throughout the United States.  Their data shows that reconstruction costs have been rising around 3% a year across the last decade.

Here are some examples of increased construction costs from NAHB over the past 5 years:

Drywall: 2002 – $8,047

2007 – $11,185

Siding: 2002 – $6,411

2007 – $12,476

Cabinets/Countertops: 2002 – $6,568

2007 – $12,477

Electrical Wiring: 2002 – $5,011

2007 – $8,457

Roof Shingles: 2002 – $3,941

2007 – $7,070

Total Construction Cost: 2002 – $151,671

2007 – $219,015

 Not having the proper amount of insurance on your home could be devastating.  Even if you had a smaller loss, coinsurance penalties could push your out of pocket costs way beyond the deductible on your policy.  I’ll cover that next time, so be sure to follow me on twitter at www.twitter.com/wawells3

 In the meantime, if you have any questions about your homeowners insurance policy, please give my office a call at 434-793-6611.