Tougher Teen Driving Rules Should Reduce Number of Auto Crashes

Tuesday, February 23rd, 2010 | Teen Driver | No Comments

NEW YORK, February 23, 2010 — A New York law that took effect yesterday is aimed at strengthening the state’s existing graduated driver license (GDL) system for teenagers, according to the Insurance Information Institute (I.I.I.).

New York enacted a measure that decreased to one from two the number of non-family passengers under the age of 21 that junior drivers can have in their car, and increased to 50 from 20 hours the required supervised hours a teenaged driver must complete before scheduling a road test. Fifteen of those 50 driving hours must take place after sunset, according to the state’s Department of Motor Vehicles.

“Every state in the nation has adopted one or more elements of the GDL system,” said Michael Barry, vice president of Media Relations for the I.I.I. “Congress is also considering federal legislation to this effect.”

GDLs generally include a three-phase program that gives teen drivers an opportunity to develop more mature driving attitudes and gain experience behind the wheel over a period of time. Florida became the first state to enact a GDL law in 1996, and GDL legislation has been credited with reducing the number of motor vehicle accidents involving teenaged drivers in that state and elsewhere.

Nonetheless, motor vehicle crashes remain one of the leading causes of death among 15- to 20-year-olds and insurance industry research shows that more than half of teens who die in crashes are passengers, many of whom are not wearing a seatbelt. In addition, the data indicates that a teen driver’s chance of getting into a fatal accident doubles when a teen passenger is in the car. With three or more passengers, the risk quadruples.

“Immaturity and lack of driving experience are the two main factors leading to high crash rates among teens,” said Barry. “Even the best teenage drivers don’t have the judgment that comes with experience. It affects their recognition of and response to hazardous situations and results in dangerous practices such as speeding and tailgating. Teens also tend to engage in riskier behavior—eating, talking on their cellphones and text messaging. The added distraction of another teen passenger in the car just adds to the risks facing young drivers.”

Besides abiding by your state’s GDL laws, the Insurance Information Institute recommends parents and guardians take the following precautions, many of which also carry possible insurance benefits, to ensure the safety of their teens.

1. Pick a safe car.
You and your teenager should choose a car that is easy to drive and would offer protection in the event of a crash. Avoid small cars and those with high performance images that might encourage speed and recklessness. Trucks and sport utility vehicles (SUVS) should also be avoided, since they are more prone to rollovers.

2. Have your teen take a driver’s education course.
A teenager who has learned to drive through a recognized driver’s education course may be viewed more favorably by insurers. In some states, teens must take a driver’s education course if they want to get a license at 16; otherwise, they have to wait until they are 18. The more driving practice your teen gets, the more confident he or she will be behind the wheel and the better able to react to challenging situations on the road.

3. Enroll your teen in a safe driver program.
Some insurers offer “safe driver” programs. Teen participants in these programs sign parent-teen driving contracts which outline the young driver’s responsibilities and the consequences of failure to meet those expectations. Check whether your insurance company has such a program—if your teenager completes the program, you may be eligible for a discount.

In addition, insurance companies are helping to reduce the number of accidents involving teen drivers by subsidizing the cost of electronic devices, such as GPS systems and video cameras, which can monitor the way teens drive. These monitoring services are usually operated by independent companies and alert parents of unsafe driving by email, text message or phone. Some insurers now offer discounts for parents and teens who participate in these safe driving programs.

4. Talk to your teen about the dangers of drinking and driving.
Alcohol and driving do not mix. Parents should impose a no tolerance policy when it comes to alcohol and driving.

5. Talk to your teen about the dangers of distracted driving.
Too many accidents occur each year because a teen driver was using a cellphone, text messaging, playing with the radio or CD controls or talking to friends in the backseat, so encourage your teen to put away their cellphone, ignore the radio and concentrate on driving. Also, teens should be careful not to create distractions and to exhibit safe behavior when they are passengers in their friends’ cars. New drivers should wait until they have driven 1,000 miles or for six months before picking up their first teen passenger.

6. Be a good role model.
New drivers learn by example, so if you drive recklessly, your teenager is likely to imitate you. Drive carefully, avoid texting and cellphone calls, always wear a seatbelt and never drink and drive.

Is Your Business Properly Insured? Find out by Asking Your Insurer the Four Most Important Questions

Sunday, February 21st, 2010 | Commerical Insurance | 3 Comments

NEW YORK, February 9, 2010 — Running a successful business in today’s economy is no easy feat. In addition to typical risks such as theft and fire, there are a host of other risks that are unique to each particular type of business. So it is essential that businessowners, now more than ever, make sure they buy the right type and amount of insurance and update their policies annually to include improvements, major purchases and increased rebuilding costs as well as any liability risks, according to the Insurance Information Institute (I.I.I.).

“One of the biggest mistakes business owners make is that they don’t buy the right type of insurance and often have gaps in their coverage,” said Loretta Worters, vice president, I.I.I. “Businessowners should contact their insurance agent or company representative annually to make sure that their insurance is adequate.”

A Businessowners Policy (BOP) is recommended for most small businesses (usually 100 employees or less), as it is often the most affordable way to obtain broad coverage. BOPs are sort of “off the shelf” policies combining many of the basic coverages needed by a typical small business into a standard package at a premium that is generally less than would be required to purchase these coverages separately. Combining both property and liability insurance, a BOP will cover your business in the event of property damage, suspended operations, lawsuits resulting from bodily injury or property damage to others, etc.

BOPs do NOT cover professional liability, auto insurance, workers compensation or health and disability insurance. You will need separate insurance policies to cover professional services, vehicles and your employees.

For medium-sized and larger businesses, there are more comprehensive commercial policies. To properly insure your business, the I.I.I. suggests that you ask your agent or company representative these four important questions to determine the right type of policy and amount of coverage:

1. Do I have enough insurance to rebuild my business property and replace all of my merchandise and possessions?

A Building and Personal Property coverage (BPP) policy is commonly used to cover any combination of the following three broad categories: the building, your business personal property and the personal property of others. Usually the covered building is owned by the insured. However, a lessee might insure a leased building when required to do so by the terms of the lease.

Your Business Personal Property coverage includes seven specific categories:
1.Furniture and fixtures
2.Machinery and equipment
3.Stock (i.e., merchandise held in storage, including raw materials, work in-progress and finished goods)
4.All other personal property owned by you and used in your business
5.Labor, materials or services furnished or arranged by you on the personal property of others
6.If a tenant, the improvements or betterments you have made
7.Leased personal property which you have a contractual responsibility to insure
It is vital that the value of your property be accurately reported and updated annually to reflect inflation and other increases in cost.

2. Do I have enough insurance to protect the personal property of my employees?

In order to protect the property of your employees, you will need to add Personal Effects and Property of Others coverage to your policy. This coverage permits the insured to extend up to $2,500 worth of its business personal property coverage to personal effects of the insured and its officers, partners or employees and personal property of others in the insured’s care, custody or control. The personal effects coverage does not include theft, even if theft is a covered cause of loss under the policy.

If the $2,500 limit is inadequate to cover personal property to others in the insured’s possession, a higher limit can be purchased.

3. Do I have enough insurance to keep my business open?

A business that has to close down completely while the premises are being repaired may lose out to competitors. A quick resumption of business after a disaster is essential. That is why business interruption insurance is so important.

“Make sure the policy limits are sufficient to cover your company for more than a few days,” said Worters. “After a major disaster, it can take more time than many people anticipate to get a business back on track. There is generally a 48-hour waiting period before business interruption coverage kicks in,” she added. “Too many businessowners fail to think about how they would manage if a fire or other disaster damaged their business premises so that it was temporarily unusable.”

The price of the policy is related to the risk of a fire or other disaster damaging your premises. All other things being equal, the price would probably be higher for a restaurant than a real estate agency, for example, because of the greater risk of fire. Also a real estate agency can more easily operate out of another location.

There are typically three types of business interruption insurance. You can purchase any one of these or any combination of them that would make sense for your business:
■Business income coverage – Compensates you for lost income if your company has to vacate its premises due to disaster-related damage that is covered under your property insurance policy. Business income insurance covers the profits you would have earned, based on your financial records, had the disaster not occurred. The policy also covers operating expenses, such as electricity, that continue even though business activities have come to a temporary halt.

Review your annual financial records with your accountant to determine your annual net profit (total revenue minus total expenses). You should also have an approximate idea of how much profit you make (and would therefore lose) during a typical year. Purchase enough business income coverage to protect at least this amount of revenue.)

■Extra income coverage – Reimburses your company for a reasonable sum of money that it spends, over and above normal operating expenses, to avoid having to shut down during the restoration period.

In order to calculate how much extra expense coverage you will need, an appraisal of your office building or any other operating locations should be made as well as a detailed inventory, not only of your product stock but also of your existing office equipment.

■Contingent business interruption insurance – Protects a business owner’s earnings following physical loss or damage to the property of the insured’s suppliers or customers, as opposed to its own property. Companies today are heavily dependent on raw materials from key suppliers to make the products they sell. What happens if the supplier suffers a loss and cannot continue to deliver the product?
Make sure to determine how much revenue would be lost if you were unable to receive your product from your main supplier or if your main customers were unable to buy from you.

4. Do I have enough insurance to protect my assets from a lawsuit?

The only way to protect your assets is to carry adequate business liability insurance. A Commercial General Liability (CGL) insurance policy is the first line of defense against many common claims. CGL policies cover claims in four basic categories of business liability:

■Bodily injury
■Property damage
■Personal injury (including slander or libel)
■Advertising injury (damage from slander or false advertising)
In addition to covering the claims listed above, CGL policies also cover the cost of defending or settling claims. General liability insurance policies always state a maximum amount that the insurer will pay during the policy period. There are two major forms of liability insurance policies that can be purchased: occurrence and claims paid.

■An occurrence policy covers you for a specific dollar amount for each individual year. For example, if you carry an occurrence policy for $100,000/$300,000* in 1999 and a claim is made against you in 2010 when you have a $1 million/$3 million policy, the insurance company is liable for no more than a $100,000 for that particular claim. So, if you are successfully sued for $250,000, you will be personally responsible for the $150,000 beyond your coverage. Despite inflation, rising jury awards and the increasing amount of money being asked for in lawsuits, the insurance company is still only responsible for the limits you carried at the time the injury occurred, not when the claim was made.
■A claims-made policy covers you for the policy amount you have when the claim is made. This is an advantage because every time you increase your policy limits, you are now covered for the higher limits for every year you have carried the claims-made policy. This increased coverage keeps pace with inflation and rising awards.
For related audio, go to I.I.I. Provides Tips to Make Sure Your Business is Not Underinsured.

_________________________________________

*The first number ($100,000) is the maximum amount your policy will pay to each person involved in an insurance claim. The second number ($300,000) is the maximum total dollar amount your policy will pay for a single accident regardless of the number of people filing claims.
The I.I.I. is a nonprofit, communications organization supported by the insurance industry.

Protect your business in three easy steps by Shon Messer

Friday, February 19th, 2010 | Commerical Insurance | No Comments

A business is only as safe as the tools it uses. One of the best tools a business can use to protect its assets is commercial auto insurance. 

Understanding insurance can be tricky. One of the first steps toward making an informed decision is to understand coverage and service options. Here are three easy steps to help figure out your commercial auto insurance needs:

1. Choose an insurer with the right combination of price and service. Insurance isn’t just about price. It’s about service, too. How are claims handled? How long will it take to get your vehicle back on the road? Can you get questions answered outside of business hours or online? Know the answers to these questions. Your time is money.

2. Research your policy options. Having the right coverage is important. A standard commercial auto policy generally includes coverage for: 

•injuries or damage that you cause;

•your driver’s injuries;

•injuries and damages caused by uninsured or underinsured drivers; and

•damage to or theft of your vehicle(s).

 When it comes to damage that you cause, you may be required to purchase certain limits based on who you work for. For instance, if you work for certain home builders, you may be required to carry $1 million in liability limits. Consider how much you are willing to pay out of pocket if your liability in an accident is more than your policy limits.

 3.Know how the policy is priced. You can control your insurance costs. To get the best rates, run motor vehicle reports on potential drivers. If you let your insurance lapse, you’ll probably pay more for your next policy. Ask about discounts, including paid-in-full and renewal discounts.

 Just like your customers rely on your professional skills, call a professional independent insurance agent who will be in your corner, researching and recommending the best options.

 Shon Messer, MSFS,RFC

Senior Partner/Independent Insurance Agent

http://www.shubertinsurance.com

Phone: 205-640-5892

Toll Free 866 291-011

Fax: 205-378-1683

Turned Your Hobby Into A Business? Check Your Insurance

Monday, February 15th, 2010 | Commerical Insurance | No Comments

By simply adding a snowplow, you transformed your pickup into a source of extra winter income. Your side business baking cakes has grown and you now pay someone to deliver your tasty treats.

Congratulations! But remember that starting a new business means a whole new set of rules when it comes to insurance.

People who haven’t been in business for long might not be aware that vehicles used for business require different insurance.

We can help you understand the unique needs of your business and put together a package that offers the best protection.

When should someone consider a commercial auto policy? Generally speaking, when a vehicle is:

Don’t get into an accident only to discover that your claim won’t be covered because it happened while you were clearing snow from your neighbor’s driveway, and you didn’t have the right coverage.

Commercial auto policies generally provide a higher level of liability limits. Let’s face it — larger vehicles cause more damage.

Time is money. We can find tailored coverages to meet your needs. Specialized claims reps can get your business vehicle back in service as quickly as possible.  Call Shon Messer at 205 640 5892

SB419, Mandatory Auto Liability Enforcement Bill Introduced in State Senate

Saturday, February 13th, 2010 | Uncategorized | 1 Comment

SB419, Mandatory Auto Liability Enforcement Bill Introduced in State Senate

We’ve all had clients who have been involved in a car accident that was not their fault but the other driver did not have liability insurance. The majority of Alabama’s drivers have been in this situation. When someone is involved in an accident where the other driver does not have auto insurance, the financial burden and stress falls to the insured driver.

Over a decade ago, Governor Don Seigelman signed into law a bill creating mandatory insurance requirements for all drivers. This law is designed to protect other drivers from property harm, physical injury and financial injury. This last item is not often a strong consideration until larger problems arise when the family vehicle is hit by another driver, and this driver does not have any insurance coverage at all. This places a one-car family in a bind that could lead to larger issues.

However, the problem with Alabama’s mandatory insurance law has been enforcement. Drivers can obtain insurance and I.D. cards as proof of insurance and then cancel the policy within 30 days, yet that person still has what appears to be a valid paper I.D. Card. This problem would be solved when law enforcement officials and state regulatory agencies have electronic access to an online system that could instantly verify current status of an auto insurance liability policy.

Your Independent Agents Association is responding to over three decades of pleas from you and your clients to get involved in finding a solution to this problem because your clients are tired of their insurance always having to respond.

The enforcement of the auto insurance liability law will result in more people obtaining insurance, and keeping it, which will create a much larger spread of risk and rates can be absorbed by those drivers who are actually causing the accident.

Legislation has been introduced this week. SB419 was filed yesterday in the Senate and will soon be before the Alabama Legislature to address the epidemic of uninsured drivers in the state. This Enforcement of Mandatory Auto Liability Insurance is fiscally practical to all drivers in the state. These loopholes are hurting insurance policyholders and the insurance carriers. Let’s fix these gaps.

SB419 bill does two things. First, it sets up requirements for Alabama motorists to provide proof of liability insurance prior to registering their car, as well as require proof of insurance when they re-register their car. Second, the bill establishes an online verification system so that law enforcement can verify proof of liability insurance when you are stopped or involved in an accident. These two provisions have been absent from the original bill which allowed widespread fraud with the use of invalid Auto Liability I.D. Cards.

SB419 bill will do many things for the State of Alabama. New premium taxes will generate additional funds for education, as well as the general fund. It will protect consumers who are struck by uninsured motorists from having to absorb the property damage to their car for lack of recovery from the at-fault insured motorist. It will provide for a source of recovery for injuries to drivers who when previously injured by uninsured motorists had to rely on their own medical payments and/or health insurance with little or no recourse against the at-fault party.

This bill won’t completely eliminate all these problems but it will bring those who have simply ignored the law to the table and in the process, hopefully reduce our double digit uninsured motorist percentage.

Join us at the Legislative Conference next week to talk to your lawmakers about the importance of the Mandatory Auto Liability Enforcement Law.

AIIA has distributed a press release to media outlets across the state about SB419. If you would like a copy for your local newspaper or your clients, please contact Alison Ray King at aray@aiia.org for a copy. A smiliar article ran in The Birmingham News yesterday, February 11. Click here to read the article.

Additionally, AIIA Past President Joe Fuller will be on The Matt Murphy Show Monday morning from 7:30 a.m. to 8:00 a.m. Please join our Facebook page, Strengthen Alabama’s Mandatory Auto Insurance Law,
created by lobbyist Pascal Caputo by clicking here.

We urge you to contact your State Senator and ask them to vote yes when this bill comes up in Committee and yes when it comes to the Senate Floor. We hope to get the filed in the House as soon as possible.

Click Here for Contact Info of Senate Members
Click Here for Contact Info of House Members

Fact or Fiction: Uncovering Auto Insurance Myths

Wednesday, February 10th, 2010 | Uncategorized | 1 Comment

Like a teenager eager to try a new video game, playing before reading the rules, many drivers buy insurance without really understanding what they’re buying. In the rush to feel “covered,” they can skip the details. That can lead to frustration. Following are five insurance myths heard by some of the more than 13,000 claims people at Progressive, one of the country’s largest auto insurance companies:

Myth: I bought “full coverage” so everything’s paid for.
Reality: There is no such thing as “full coverage.” In most states, only liability insurance is mandatory. There are a lot of other coverage options out there, so select what you need and can afford based on your personal situation.

Myth: I need three estimates before my wrecked vehicle can be repaired.
Reality: Not necessarily. Very few insurers actually require this, although some might. If you decide to use a shop that’s in an insurance company’s “network” of pre-approved shops you may just have to get an estimate from that shop.

Myth: My insurance premium always increases if I’m involved in an accident.
Reality: It depends. Your rate can increase, decrease or stay the same. The information about your accident is combined with other information about you, your car and your driving history to determine your rate.

Myth: If I lend my car to someone and he/she crashes it, I’m covered.
Reality: Not so fast. If you or your friend don’t have optional physical damage coverages, damage to your vehicle generally won’t be covered.

Myth: If I buy a new car, my auto insurance company automatically knows; and my new car is covered.
Reality: No. Most insurance companies require that you notify them or your agent within a specified number of days. Generally, you have 30 days to add the new vehicle to your policy.

“Insurance can be complicated,” says Shon Messer “It’s not something people deal with every day. So the more informed you are, the better choices you’ll make

Tags: Auto Ins

An independent approach to car insurance

Saturday, February 6th, 2010 | auto Insurance | 1 Comment

Many consumers are finding they can drive down the cost of car insurance—and the time it takes to select the right policy—by contacting an independent insurance agent or broker.

Because they represent many different insurance companies, independent agents have the flexibility to review rates and coverage from competing carriers and get you the best deal. Plus, they can offer affordable protection for your home, business and other assets. So rather than spending hours gathering quotes from various companies, you can get it done with one simple call or visit to your independent agent or broker.

If you’re thinking of contacting an independent agent, here are a few things to consider:

To learn more or to find an
independent agent or broker,
visit progressiveagent.com.

Did You Know?
Bundling your homeowner’s policy with your car insurance doesn’t always save you money. It may be wise to have an independent agent look at separating the policies. The discount you received for bundling may be outweighed by a lower competitive price. www.shubertinsurance.com

Declare your independence

Saturday, February 6th, 2010 | Agent Value | 2 Comments

Understanding the differences among types of insurance agents can make a big difference to your bottom line. The type of agent you choose will determine the choices you’re offered. There are two basic kinds of agents:

If you decide that you want the in-person, personalized counsel and local service an independent insurance agent offers you, here are a few things you’ll want to discuss with him or her:

Are all insurance agents the same?

Saturday, February 6th, 2010 | Agent Value | No Comments

To get the best deal on insurance, many people consult an insurance agent or broker. But did you know that there are different kinds of insurance agents and brokers — and the one you choose can make a big difference in the type of service you get and the choices you’re offered? Here’s the difference:

Captive Agents and Brokers — Captive agents work with a specific insurance company, and as part of their business agreement with that company, they can offer only that company’s insurance products. They may also be required to sell other products from that company, such as annuities and investment plans.

Independent Agents and Brokers — Independent agents and brokers can offer products from many insurance companies. This helps them better serve your interests, as they can review multiple options to find a policy and rate that’s right for you. Insurance rates vary from company to company. Independent agents can put together a customized insurance plan.

If you’re ready to contact an independent agent to talk about saving money on car insurance, here are a few things to consider:

Another plus to working with an independent agent or broker is their ability to offer guidance for all your insurance needs—auto, home, life, business and more. They can customize a package of policies just for you.

To learn more or to find an independent agent or broker, visit progressiveagent.com.

Did You Know?
Unlike captive agents, independent agents and brokers can offer products from many insurance companies. This helps them better serve your interests, as they can review multiple options to find a policy and rate that’s right for you.    www.shubertinsurance.com

Auto Insurance Made Easy

Wednesday, February 3rd, 2010 | auto Insurance | 1 Comment

Liability — Liability covers bodily injury and property damage (BI/PD). This covers your legal liability, up to the dollar limits you select, for damages caused to others in a covered vehicle accident. In most states today, liability insurance is mandatory.

Under BI/PD, your insurance company pays for damages to an injured person and for property damage that you are legally obligated to pay as a result of an accident. If your policy covers you in the event you’re sued after an accident, your insurance company will pay for a lawyer to defend you.

Liability limits generally appear as three numbers, for example, 25/50/25 or 100/300/100. The first number refers to the maximum amount, in thousands, that your insurance company is obligated to pay for bodily injury per person. The second number is the maximum that would be paid out for bodily injury per claim and the third number represents the maximum amount your insurance company is obligated to pay for property damage you cause.

Collision — When you buy collision coverage, your insurance company pays for damages if your vehicle collides with another vehicle or object. Collision coverage involves a deductible amount you select when you purchase your policy. This amount is what you are required to pay before your insurance company starts picking up the tab. Remember, the deductible amount is the amount you need to pay in the event of a claim.

Comprehensive — Comprehensive covers damage caused by events other than a car collision — such as fire, theft, vandalism, hail or flood. It also covers damage caused by your vehicle colliding with an animal. And if your car is stolen, it will cover the cost of a rental, subject to a daily limit. Like collision coverage, a deductible usually applies.

Medical Coverage — Depending on the state in which you live, you may have available to you Medical Payments coverage or Personal Injury Protection (PIP) coverage. While these both work differently, they provide coverage for medical care provided to you as a result of a car accident.

An independent insurance agent can help you determine the price, coverage and service that best meets your needs.